According to the latest advisory, businesses (who will be collecting value-added tax (VAT)) can register online and subsequently file returns on a regular basis with the use of the government’s e-service.
It has also been said that the UAE Ministry of Finance has recently updated its website to advice companies on the VAT registration. This will open to qualified companies three months before the roll-out. This initiative was initially slated for January 2018.
“Businesses will be able to register online using eServices,” the ministry said on its website.
According to KPMG, the latest advisory talks of clearing indicators and the UAE government remains on track to launch VAT less than a year from now. “Based on our international experience with the VAT implementation in Malaysia, the time for businesses to prepare is tight. While some of you will have started preliminary preparations, having established a budget and project teams, action needs to be stepped up”.
It is however noted that companies will need to meet all the requirements before signing up. Afterwards, registered businesses will then be required to submit quarterly VAR returns online.
“It is expected that the default period for filing VAT returns will be three months for the majority of businesses” Ministry.
The Gulf Cooperation Council (GCC) member states had earlier agreed to collect a 5 per cent VAT from January 1, 2018. This came as a way to raise non-oil revenues. However, details as to which goods and services will be covered have yet to be announced, with the UAE VAT law still being finalised.
On a concluding basics, businesses are asked to wait for the official announcement but meanwhile, they can check on the Ministry of Finance website for updates.