DUBAI – Preparing to implement taxes in the United Arab Emirates (UAE), the Federal Tax Authority (FTA) will open their online registration for tax purposes in the middle of September this year.
Around 350,000 companies in the country will be covered under value added tax (VAT) system from January 2018 onwards, according to a gulfnews.comreport.
“The Excise Tax and VAT laws are expected to be issued during the third quarter of this year and the regulations concerning both laws in addition to federal tax procedures are expected to be issued during the fourth quarter of 2017,” Director General of FTA, Khalid Ali Al Bustani, said during a press conference in Abu Dhabi.
The excise tax, on the other hand, will be implemented in the fourth quarter of this year. Businesses that have an annual income of AED 375,000 are required to register under the VAT system. Their VAT will be set at five percent.
The current move is one of the phases the FTA is implementing in preparation for next year’s full implementation of the new tax laws in the UAE.
Earlier this month, a workshop was conducted by the Dubai Chamber of Commerce and Industry in cooperation with the FTA.
Over 400 retailers were invited to the workshop to orient them on the mandatory registration procedures with the new tax laws.
“This workshop marked the beginning of the 2nd phase of the tax awareness campaign launched by the Ministry of Finance and the Federal Tax Authority back in March, which was successful in achieving its objectives of educating retailers in the UAE about tax procedures, businesses’ tax obligations, the FTA’s role in the implementation process, and the VAT’s contribution towards a more sustainable and diversified economy,” Al Bustani said.