Dubai: The Ministry of Finance confirmed on Monday it was fully prepared to implement value added tax from January 1, 2018, stressing the importance of the ministry’s relationship with the Federal Tax Authority (FTA).

Younis Haji Al Khouri, Undersecretary of Ministry of Finance (MoF), said at a media briefing on Monday that the MoF had reviewed the main points of VAT implementation, foremost of which is the commitment of the UAE to apply VAT as per the GCC joint agreement.

He pointed out that the tax system would support the economic development witnessed by the UAE, as well as enable it to compete with the world’s most advanced economies.

It will do so by providing resources to support the expansion of key sectors, especially in the areas of health care, education and infrastructure.

He said: “VAT was introduced in the UAE after in-depth studies indicating that there would be no impact on the business sector and the investment environment in the country, nor would it affect the country’s position and competitiveness should it be implemented. In fact the UAE will implement the lowest VAT tax rate on a global level, with the aim of reaching the highest levels of happiness within the UAE community.”

He highlighted the cooperation between the MoF and FTA in various aspects related to taxation, particularly in the implementation of intensive awareness campaigns.