The Ministry of Finance has officially launched the second phase of a value added tax (VAT) awareness campaign, and confirmed that VAT and excise tax legislation is expected to be published by the end of the third quarter of 2017, to be followed by the release of implementing regulations in the last quarter of 2017.
Among recent updates, there appears to be the possibility of monthly VAT returns for certain categories of registered entities (previously, VAT returns were intended to be only quarterly). VAT returns can be filed in both English and Arabic.
Future announcements are expected to address how to register for VAT, real estate-specific guidance for VAT purposes, and a “capital assets scheme.”
With confirmation that the VAT law is to be released this autumn, preparing for the introduction of VAT will be particularly challenging given the significant administrative, systems, and process changes that will be required. At this stage, businesses cannot afford to wait for the publication of the law before commencing their respective preparations. In fact, transaction flows and processes can already be analyzed in anticipation of the final law thus maximizing the time available before the actual implementation.
Read a report prepared by the KPMG member firm in the UAE
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