2. WHAT IS VAT?
VAT (Value Added Tax) is one of the most common types
of consumption tax found around the world. Over 150
countries have implemented VAT.
VAT, as a general consumption tax, will apply to the
majority of transactions in goods and services. A limited
number of reliefs may be granted. However, it is
expected that only utilities like healthcare and education
may be exempted from the tax. The VAT rate is expected
to be low at around 5%.
3. VAT is a tax which is applicable at each point of sale
where value has been added, from beginning to the end
user. So it is levied at each stage in the chain of
production with the provision of a set-off for the tax paid
at earlier stages in the chain.
In particular, the United Arab Emirates (UAE) on 1
January 2018 implemented VAT.
4. WHAT WILL BE TAXED?
Electronics
smart phones
cars
jewellery
watches
eating out
Entertainment
certain beverages that are deemed to be harmful to
health, etc
5. DO I NEED TO START PREPARING FOR VAT?
WHAT SHOULD I BE DOING NOW?
There is a relatively short time to consider the
implications of the introduction of VAT and to make
the necessary changes. The amount of work
required will depend on the size and complexity of
your business and it is essential you consider the
impact now and determine how best to deal with it.
6. WHAT WILL BE EXEMPT FROM THE TAX?
The UAE government has already announced that
100 food items, health, education, bicycles, and
social services would be exempted from VAT.
7. SOFTWARE'S FOR VAT
SAGE 50 UK Accounting Software
•QuickBooks UK Accounting Software,
•SAGE 50 UK Accounting Software
•Tally ERP 9 Software
