Dubai
Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and the UAE’s Minister of Finance, has urged businesses across different industries in the country to comply with the executive regulations regarding Value-Added Tax (VAT).
In a statement on Sunday, the Minister called on all business to register online through the Federal Tax Authority’s website to receive a tax identification number, and to avoid any penalties for violating tax laws.
He also said businesses must complete the registration process and update their data to ensure compliance with the tax system, which will come into effect from January 1, 2018.
“Implementing VAT is one of the key steps to building a sustainable, knowledge-based economy, as this tax will be an important resource to support infrastructure development, strengthen public services, and enhance global competitiveness of the UAE,” Shaikh Hamdan said.
He added that the Ministry of Finance is working with the Federal Tax Authority to ensure a smooth implementation process for VAT, and that the Ministry is working to support businesses as they apply the tax.
According to the executive regulations already released regarding VAT in the UAE, companies with a turnover of Dh375,000 of more must register their business for VAT, while registration for companies with a turnover above Dh187,500 is voluntary.
