Governments in the GCC region have been considering the need to diversify income sources, and it is now widely expected that the GCC States will introduce Value Added Tax (VAT) probably from 1 January 2018 or by 1 January 2019 at the latest.
Until further official announcements are made and national legislation issued, the exact date for each GCC country is yet to be confirmed but certainly VAT is coming to Dubai in the very near future!
VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. A limited number of reliefs may be granted. However, it is expected that only utilities like healthcare and education may be exempted from the tax. The VAT rate is expected to be low at around 5%.
There is a relatively short time to consider the implications of the introduction of VAT in Dubai and for clients to make the necessary changes needed.The amount of work required will, of course, depend on the size and complexity of the business concerned which is why it is important to take steps to assess how best to deal with the reality of VAT in Dubai as soon as possible.
PMC has experience of working with tax authorities and advising clients in other VAT jurisdictions. We have the expertise and experience to assist Dubai based clients in understanding how VAT will impact their business and to assist with their VAT implementation and compliance process.
Our simple, yet comprehensive approach, has 3 key stages:
Once the appropriate systems and processes are in place, PMC can then help on an on-going basis, with the administration of VAT in your business, to ensure you comply with the new requirements such as:
For more information as to how PMC can help your business, and to arrange an initial consultation please contact a member of PMCs VAT team on + 971 4 345 56 99.