Category Taxation in UAE

Alcohol in Abu Dhabi No Longer Tax Free

June 14, 2018 Taxation in UAE

alcohol tax in Abu DhabiABU DHABI – Alcohol will no longer be tax-free in Abu Dhabi, and the licenses needed to buy it will soon also carry their own cost.

From June 15th Abu Dhabi will be enacting a new tax on alcohol sales on stores, along with a fee for the grant of a license to purchase alcohol.

The rate of tax on the sale of alcohol will be set at 30 percent, matching the rate already set in place in Dubai.

The tax is intended to be levied on sales from stores, however, there is not yet confirmation of whether the tax will apply to alcohol sold in bars or restaurants.

Local media has reported that some retailers are offering discounts in order to encourage consumers to stock up on alcohol prior to the implementation of the tax.

The tax will be accompanied by a new fee for a license to purchase alcohol, wh...

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Dubai Rolls Back VAT on Gold

May 4, 2018 Taxation in UAE

Tax on gold in DubaiABU DHABI – The gold and diamond trade in the UAE should pick up again, as the government rolls back VAT for these luxury items.

On May 2nd the government of the United Arab Emirates announced that it will implement a new tax mechanism to eliminate VAT on the wholesale of precious metals.

Earlier this year the government introduced a general VAT of 5 percent on all items, aside from education, healthcare, and basic food items.

The government has announced that a reverse-charge mechanism will now be implemented during the sale of gold and other precious metals.

The mechanism is aimed at impacting wholesalers and overseas suppliers, and will see the GST obligation transferred to the sale of the item to a retail buyer.

Some figures have suggested that the implementation of the VAT in Januar...

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Don’t Forget the VAT, Say UAE Authorities

March 14, 2018 Taxation in UAE

Dubai taxABU DHABI – Businesses in the UAE are being reminded to comply with their new VAT obligations.

The Federal Tax Authority (FTA) of the United Arab Emirates has issued new guidance to all businesses in the area, advising them of their responsibilities as VAT-registered entities.

The main guideline was the reminder that any prices for goods or services displayed, offered, or advertised by the business must be inclusive of all VAT and Excise duties which will be owed on the sale.

The FTA said that not displaying taxes on the sale price is equivalent to misleading consumers.

Any businesses that do not display taxes on its products will be liable to pay a fine of AUD 15 000 per tax which is not already included in the price.

The introduction of VAT in the UAE has hit some minor roadblocks, ...

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UAE Opens Tax Agent Registration

November 27, 2017 Taxation in UAE

VATABU DHABI – UAE’s VAT registrations are speeding up, with tax agents now being able to be officially registered.

Over the weekend the Federal Tax Authority of the United Arab Emirates opened up the process of registration for tax agents in the country.

The UAE will enact a Value Added Tax on the first day of 2018.

As the profession of tax agent is new in the UAE, the standards for registering as a tax agent has not been set in stone, and, currently, the only requirement is a Bachelor- or Master-level degree in tax, accounting or law from a “recognized educational institute”.

The VAT implementation process in the UAW has been progressing rapidly, as only weeks ago the registrations for businesses were opened up.

The FTA has stated that businesses must register for VAT by December 3rd, ...

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Drinks and Smokes Targeted for Tax in UAE

October 2, 2017 Taxation in UAE

Drinks CansABU DHABI – Drinking energy drinks and smoking cigarettes is about to become more expensive in the UAE.

On October 1st the United Arab Emirates began collecting sin-taxes on selected products deemed to be harmful to human health, with the newly raised funds being used to plug the growing deficits seen by the government over recent years.

The new taxes have come to be called “sin taxes” and will be levied on the sale of cigarettes, tobacco, soft drinks, and energy drinks.

The rate of the tax has been set at 100 percent for the sale of energy drinks and tobacco, and a smaller rate of 50 percent of soft drinks.

The “sin tax” is the precursor for further taxes to be enacted in the near future, with a 5 percent VAT to be levied from January next year on selected goods.

The new taxes ...

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