- July 13, 2017
- Posted by: VatMan
- Category: Blog
This is yet another sign for the sceptics that VAT implementation is still on schedule for 1 January 2018. The Ministry of Finance update provides general information on some previously unanswered questions. There are almost 30 new FAQs largely covering the topic of VAT for Businesses including, but not limited to, the following key areas:
- Appeal Process – there will be a three tier process
- Penalties – the sorts of actions leading to penalties
- VAT Invoices – the retention period and who must issue them
- Zero Rate and Exemption – more goods and services confirmed
- Transitional Rules – supplies that straddle 1 January 2018
- VAT Groups – grouping will be allowed
- No Schemes for SMEs – no special rules for administration
- Supply – rules and conditions, place of supply
- Partial Exemption – law will provide details
This update provides some clarity on the existence of these provisions in the UAE Law, however, there will only be complete administrative information once the VAT Law is actually published. This is expected within the next month or so, followed by registration commencing on 1 October 2017.
The key take away here is that businesses should continue to focus on preparation for VAT aiming to be ready for a 1 January 2018 start date, as the MOF is certainly focused on this date.
(For further information see the news article in our Press Room section. )
“By failing to prepare, you are preparing to fail.”
– Benjamin Franklin
Written by: Azeem Zafar, founder and CEO of VatMan Gulf Limited.
VatMan Gulf is the first choice for businesses requiring VAT specialist services in UAE and the rest of the GCC. We provide the best client experience and deliver value for money. VMG’s mission is to provide a VAT focused service; thus differentiating itself from the majority of firms in the region that take a very general accounting approach. At VatMan Gulf we stay well versed on VAT law developments, providing a comprehensive service that includes, but is not limited to, imparting VAT knowledge, implementing training procedures and ensuring VAT compliance on a continual basis.