Welcome To The VAT Services Group:
VSG is a UAE based specialist consultancy group focusing on Value Added Tax (VAT) and the implementation thereof in the GCC. VSG is equipped to guide all companies in the GCC through the complexities of implementation and the day to day administration of all VAT matters. Our qualified team has decades of experience in dealing with VAT related matters from across numerous business sectors. No matter the size or industry VSG are able to provide reliable and professional advice and support to ensure sustainable VAT management and compliance.
News & Information:
With the implementation of value-added tax (VAT) getting closer, businesses in the UAE and the rest of the Gulf Cooperation Council (GCC) countries have been advised to “take action” in order to prepare themselves for the new system. Companies have been advised to start creating awareness and looking into the potential impacts of the new tax on their business, including margins and cash flows. They should also look into tax compliant strategies to “ensure a smooth transition.” Companies in the UAE that record annual revenues over $375,000 will be obliged to register under the new VAT system and will accordingly be accountable for VAT, according to Younis Al Khoury, undersecretary at the UAE’s Ministry of Finance.
Companies in the UAE that record annual revenues over $100,000 will be obliged to register under a Value Added Tax (VAT) system, and will accordingly be taxed, according to Younis Al Khoury, undersecretary at the country’s Ministry of Finance. Companies whose revenues range between $50,000 and $100,000 will have an option to either register under the system or not during the first phase of rolling out the system.
At a recent briefing by the UAE Ministry of Finance it was confirmed that VAT will be introduced at a rate of 5% with some limited exceptions including basic food items, healthcare and education. The UAE are planning to implement on 1 January 2018 - other GCC countries may do so at the same time or by 1 January 2019 at the latest.
The MOF also emphasized the need for all taxable persons to comply with the new regulations as penalties of up to 500% of the tax due will be imposed. In addition, it will have the authority to shut businesses for 72 hours.
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