By Staff writer
UAE said it expects to generate about $2.7 billion to $3.27 billion from VAT in its first year
The UAE is hiring a team of tax experts as well as setting up a federal tax authority that will be in charge of collecting levies when value added tax (VAT) is introduced from the beginning of 2018.
The Ministry of Finance is advertising somewhere in the region of 30 positions for the new tax authority on its website, including a compliance and enforcement director, auditors, analysts, accountants and administrators, Bloomberg reported.
Deloitte LLP is advising the ministry on the structure and enforcement mechanism of the new government entity, the newswire quoted two people familiar with the matter as saying.
A sharp decline in oil prices has forced the six-nation bloc to change their stance on taxation in an attempt to increase revenue collection.
In January this year, Younis Haji Al Khouri, the UAE finance minister undersecretary, said the UAE expects to generate about $2.7 billion to $3.27 billion (AED10 to AED 12 billion) from VAT in the first year of implementation. Sectors such as healthcare, education, social services, and 94 different food items would be exempted.
The IMF estimates the UAE will post a budget deficit of 3.9 percent of economic output this year, wider than 2015’s 2.1 percent. It booked a surplus of 5 percent in 2014.