DUBAI
The UAE’s Ministry of Finance said on Tuesday it has launched the first phase of awareness and education workshops targeting businesses in the country to prepare them for the new tax system.
The system includes excise tax, which will be introduced by the end of this year, and Value-Added Tax (VAT) that will be introduced early next year.
The workshops aim to ensure that businesses fully understand the new taxes, and that they have enough knowledge to take the necessary measures to comply with the tax laws.
The first workshop targeted government entities such as chambers of commerce, departments of economic development, consultancies, and partners. It was held in Dubai and attracted more than 500 attendees, discussing the new tax system and the role that stakeholders are expected to play during the system’s implementation phase.
The Ministry had earlier announced it will introduce VAT at a rate of 5 per cent in 2018. The tax would not be applied to certain industries, however, such as education and health care, and will also exclude staple food items.
When VAT is introduced in 2018, the UAE is expected to generate around Dh10 billion to Dh12 billion in revenues in the first year of implementation.
