1st of January 2018 is the date that VAT will be introduced to companies operating in UAE.
According to drafts (Law specifics are to be announced soon):
- Only businesses that meet a certain minimum annual turnover requirement will have to register for VAT. That is, many small businesses will not need to register for VAT. We have made this decision to safeguard small businesses from the extensive documentation and reporting that a system like VAT requires. Also, businesses may not need to register with the government if they only provide goods and services which are not subject to VAT.
- VAT-registered businesses generally must charge VAT on taxable goods or services they supply; may reclaim any VAT they’ve paid on business-related goods or services; keep a range of business records which will allow the government to check that they have got things right. If you’re a VAT-registered business you must report the amount of VAT you’ve charged and the amount of VAT you’ve paid to the government on a regular basis. It will be a formal submission and it is likely that the reporting will be made online.
- Businesses will be responsible for carefully documenting their business income and costs and associated VAT charges. Registered businesses and traders will charge VAT to all of their customers at the prevailing rate and incur VAT on goods / services that they buy from suppliers. The difference between these sums is reclaimed or paid to the government.
See more about this by clicking at: vat in UAE