Businesses in the UAE could be eligible to benefit from “exceptional amendments” made by the country’s tax authority in an effort to help ease their adherence to the new Value Added Tax (VAT) laws that came into effect on January 1, 2018.
The rule, which applies only to qualifying businesses, allows extending the accounting tax period from one to three months, according to the director general of the UAE’s Federal Tax Authority (FTA), Khalid Al Bustani.
“The tax period for some businesses will, therefore, be four months, and five months for other businesses while businesses with a three-month tax period ending in March will not be affected by the amendments,” he added.
A number of small- and medium-sized businesses, which number over 450,000 across the UAE, have said they are under prepared for the new regulations and need time to be able to adjust to the new reality.
The decision to relax tax related reporting deadlines “is part of the authority’s desire to promote its partnership with the business sector, assist companies to achieve full tax compliance,” according to a statement on WAM.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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