VAT registration to begin mid-September in the UAE
UAE firms will be able to begin registering for value-added tax (VAT) from the middle of next month, Khalid Ali Al Bustani, an official has said
UAE firms will be able to begin registering for value-added tax (VAT) from the middle of next month, Khalid Ali Al Bustani, the director-general of the Federal Tax Authority, said.
Al Bustani said that companies will be able to register for VAT through the authority's own website from mid-September.
He also said that around 300,000-350,000 companies in the UAE will be affected when VAT is implemented from January 2018, with no grace period.
Firms will be expected to file VAT returns on a quarterly basis, but also have the option to pay in monthly installments if they prefer.
According to Zawya, larger companies will be targeted during the first phase of registration, both for VAT and for excise tax, which will initially be introduced in the UAE and Saudi Arabia, with other GCC states set to follow throughout the course of 2018, Al Bustani said.
Al Bustani remarked: "We at the GCC agreed that we all will implement the VAT. We are starting with Saudi Arabia in January and the rest could implement until the end of 2018."
The introduction of VAT is expected to result in inflation increasing by 1.4%, Al Bustani added.