With each passing day, we are moving towards the goal of implementing VAT in the UAE. The value-added tax in the UAE is a general consumption tax, and unless the law expressly exempts it, it will be levied on most goods and services transactions. In this case, value-added tax must be collected at every stage of the “value added” of the supply chain. The input tax deduction mechanism can ensure that the enterprise acts as the government’s tax agent or tax collector and collects tax from the final consumer. And pay taxes. Ultimately, consumers have to pay taxes.
The government authorities are making every effort to implement value-added tax in the UAE. The following are the key milestones achieved in the process of implementing the UAE VAT law:
1. The Ministry of Finance provided the draft of the UAE VAT Law
2. Federal tax law promulgated
3. Issued the VAT Act
4. Opened online VAT registration in the FTA portal
The final determination of the UAE’s administrative regulations will be the next major task for the implementation of VAT in the UAE.