Contacts +971 4 421 6613

+7 499 6774813

+7 499 4031681

+971 4 421 6613

+971 50 501 0245

  • ru Русский
  • en English
  • es Español
  • ar العربية
AMADLAW Business Setup Services in Dubai

WORLDWIDE COMPANY FORMATIONS

  • Business for Sale
  • Services
    • Company Registration
    • Company Liquidation
    • Company Formation
    • Setting up a UAE Business
    • Starting a Business
    • UAE Licence Renewal
    • Legalization of Documents
    • UAE Real Estate Registration
    • Opening a Bank Account
    • Registration of Rights to Intellectual Property Objects
    • UAE Tax Domicile Certificate
    • Visa Support
    • Italian Resident Permit
    • Company Registration in Singapore
    • Wills for Non-Muslims in UAE, Protect your assets!
  • Our Company
  • Partnership
  • Contacts
  • FAQ
  • News
Home » News » Over 5,000 Jobs Are Expected in GCC After Introducing VAT

Over 5,000 Jobs Are Expected in GCC After Introducing VAT

Over 5,000 Jobs Are Expected in GCC After Introducing VAT

Over 5,000 Jobs Are Expected in GCC After Introducing VAT

On January 1, 2018, (VAT) value-added tax should come into a result for the very first time in the UAE. Small businesses are worried about the financial and functional influences of VAT conformity, especially because they’re used to functioning in a low-tax business environment.

While you will see implications for systems, skills, infrastructure and training, there are a variety of benefits associated with the new duty system on businesses and the market.

What’s VAT?

It is a tax on the intake of services and goods and has been established at 5 % over the GCC countries. This rate is one of the lowest on the globe, with some countries charging VAT greater than 20 %.

VAT is levied on every supply chain level, extended from the manufacturer and provider to the wholesaler and retailer, taxing the ‘value added’ by entities at each point in the chain. For instance, raw cotton becomes more important as it steps along the supply chain to eventually be turned into a T-shirt, or the final product.

Certain industries will be exempt from paying VAT, such as medical care, education, foods, some form of real estate trades and local transportation, but these vary between member countries. Export of goods beyond your GCC will be zero-rated, this means exporters can lay claim a duty refund.

Head of Policy at CPA Australia and a specialist in tax legislation, Paul Drum, has stated that it’s expected that around 5,000 financing and accounting careers will be formed across the GCC region with the introduction of VAT (Value-Added Tax).

Within a workshop at the UOWD, the University of Wollongong in Dubai, discussing the prospects of new tax law, Mr Drum said that VAT had been executed by more than 150 countries around the world. Revenues government is generating from taxation are usually used to cover general population services including public health, general public funded or owned schools transportation and park infrastructure. “The UAE will apply a VAT rate of 5 % on taxable items which is surprisingly low compared to the average taxes rate of 19 percent internationally. However, not everything will be incurred VAT as regulations make provision for duty exempted goods and zero-rated services to make sure that the impact of VAT on consumers is maintained to the very least,” Drum described.

Businesses with the very least turnover of AED375,000 must sign up for VAT, while organizations with a maximum turnover of below the required threshold but exceeding the voluntary sign up the threshold of AED187,500 have an option to join up. Voluntary sign up will be especially good for start-up businesses and new ventures without a turnover at the moment. It is vital for VAT recorded businesses to keep their business details as proof tax priced and VAT they have got paid to the federal government.

Discussing job opportunities, Mr Drum said this value-added tax brings a great news to current accounting and financing graduates and students as this form of taxation will generate ample jobs in various sectors.

Contacts

Phone:

+971 4 421 6613

E-mail:

info@amadlaw.com

Free Consultation

News

  • SMEs in the UAE Facing Major Challenges in Getting Funds
  • Dubai SME and WOMENA Has Launched New Entrepreneur Program for Emirati Women
  • Expo 2020 Dubai Projects that Will Change the Aspect of the City
  • UAE SME Growth Will Boost in 2018
  • Over 5,000 Jobs Are Expected in GCC After Introducing VAT

OUR OFFICE IN UAE:
+971 44 216-613
+971 50 501-0245
+7 499 6774813
+7 499 4031681
PO Box: 112344
Dubai, UAE
Emarat Atrium, 423
Al Wasl Area

OUR OFFICE IN RUSSIA:
+7 495 785-0785
+7 495 785-0777
+7 495 785-1005
+7 495 755-8822
Pokrovka Street,
building 1/13,
Moscow city
101000

FREE ZONES IN UAE
  • Umm Al Quwain Free Zone
  • RAK and RAKIA Free Zone
  • SAIF Zone Free Zone
  • Hamriyah Free Zone
  • Ajman Free Zone (AFZA) Free Zone
  • Dubai Healthcare City Free Zone
  • Dubai International Airport Free Zone
  • Dubai Maritime City Free Zone
  • Dubai Media City Free Zone
  • Dubai Silicon Oasis Free Zone
  • Fujairah Creative City Free Zone
  • Jebel Ali Free Zone
  • DWC Free Zone
  • DMCC Free Zone

BUSINESS IN UAE

  • Investments in Estate
  • Legislation in UAE
  • Laws of UAE
  • UAE (Dubai) Offshore
  • Basic Principles of Economy of UAE
  • Free Zones in UAE
  • Oil Industry in UAE
  • Production in Emirates
  • Raw Material Base in UAE
  • Start Business in Dubai
  • Setup Business in Dubai
  • Company Formation Dubai

© 2018 Amadlaw Management Consultancy

Business Setup Services in Dubai

Disclaimer