VAT Implementation in the UAE: Challenges and Impacts
The UAE has one of the simplest tax systems in the world but recently announced a new 5% value added tax is going to have a great impact on the businesses both small scale and large ones across the country. This move was taken as part of the effort to raise revenue and invest more in the economy’s infrastructure. This new change to the tax system seems to make a big change in the way businesses in all the Emirates across the UAE operate. This is going to affect them to a greater extent. Let us look at the VAT Implementation in the UAE while discussing how this might impact your business in the days to come. What does VAT mean? VAT which is short for value-added tax is a kind of tax on the consumption of goods and services. VAT in the UAE has been capped at 5% on all consumer goods and services. Yet, it is the lowest in the world, with some nations going beyond 20%, this current change in the UAE tax system is going to have a big impact on the businesses across all the