What is VAT ?
VAT stands for Value Added Tax. It is also known as the consumption tax which is applied on almost all the goods according to the expenses that have been spent on the production of these items during their making. Every country has their own laws for VAT, so the rate depends on the location. VAT is already implemented in 90 percent of the countries around the world. The countries in the Middle East are yet to implement this consumption tax and make up the remaining 10 percent of the countries. It is a source through which revenues for the government are raised.
Implementation of VAT in UAE
The GCC has decided to take up the step of VAT implementation. The Financial Affairs Minister of UAE, His Excellency Obaid Humaid Al Tayer has announced that UAE will implement VAT on its goods and products from the 1st of January, 2018. From the start of next year all the consumers will pay a value added tax of 5 percent on services and goods while purchasing them. This value added tax is expected to generate around twenty five billion dollars every year.
VAT updates in UAE
VAT will be introduced on almost all the items, goods and services excluding health care, 100 basic food items, bicycles, social services and education. Some of the items that will be taxed include smart phones, jewelry, electronics, cars, eating out, entertainment and watches. UAE VAT consultants are determined to help the people get ready for this change. VAT is sure to have its effect on every business set up in the UAE for which the Dubai VAT advisors have their best advice and guidance ready. There is a very short period of time left to the implementation of VAT and you need to get ready and prepared regarding the effects it might have on your business. The extent of changes and ups and downs that the people of UAE might face depends upon the type of business that they own and its complexity. Dubai VAT advisors have stated that it is very important to consider the alterations and changes that you might have to face that are sure to occur with VAT implementation from next year.
How NEX Consultants can assist you..
NEX is a firm that is filled with a team of hard working professionals who aim to help you manage your business according to the situations. These Dubai VAT advisors anticipate the changes that might occur and work their best to notify about the risks that might emerge for your business. UAE VAT Consultants working at NEX, aim to assist you in understanding the jeopardies and threats that your business might face with the implementation of VAT. Their aim is to help people cope up with the changes and modifications due to VAT implementation. They provide with the best strategies and tactics which are required to tackle adversities and challenges faced by technology, competition and globalization. The UAE VAT consultants have an objective to play their role as trust worthy consultants that are sure to provide positive results with their careful analysis and solutions.