Effective from January 1, 2018 it is anticipated that the UAE, along with the other member states of the Gulf Cooperation Council (GCC) will introduce a broad valued added tax (VAT) at a rate of between 3-5%.
Who will be affected by the new tax?
All businesses in the UAE will be affected since VAT will impact most sales of goods and services within the UAE, where it is anticipated there would be limited exemptions and consumption tax relief. There will be a right for businesses to claim a credit for VAT paid on their expenditures, relating to their business activities.
We analyze the potential VAT issues facing specific industries. The summary documents aims to give a better understanding of the business issues, VAT liabilities and potential opportunities for each industry:
How KPMG can help
We have an experienced VAT team, part of a global network of VAT experts, who have been advising clients on implementation strategies, helping them comply with VAT obligations and explaining their VAT liabilities. They focus on:
- IT and VAT impact assessments
- Implementation strategies
- IT testing
- In-house training for employees
- VAT manuals
- Registration advice
- Guidance on VAT submissions - including reports and reviews
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.