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ABU DHABI / WAM
The concerns emanating from the application of the Value-Added Tax (VAT) are overrated, as its impact on the country’s business sector will be in the minimal and will rather generate myriad benefits for the economy, according to a senior official at the Department of Economic Development (DED) — Abu Dhabi.
“The application of VAT effective January 1, 2018 will reflect positively on the country’s developmental drive as it ideally goes in harmony with the government’s vision to ensure a robust, sustainable and diversified economy to ultimately wean the country off oil in the future,†Saif Mohammad Al
Hajiri, DED Chairman, has stated.
“The Department has ensured the development of a well thought-out strategy across the emirate of Abu Dhabi to control prices and open up channels of communication with consumers and monitor any misuse of the tax application,†he added, noting that the UAE is applying the world’s lowest rate of VAT, which is 5 percent. VAT Registration is mandatory for companies and individuals doing businesses in the UAE, having an annual turnover of more than AED375,000.
Saudi expects $9.3 billion from first year’s VAT
RIYADH / WAM
Saudi Arabia started on Monday applying the value-added tax as part of the country’s plans to boost revenue. The 5% tax will apply to a wide range of items, including food; clothes; electronics; petrol; phone, water and electricity bills; and hotel reservations.
Hamoud Al-Harbi, the project manager of VAT at General Authority of Zakat and Tax (GAZT), told WAM that a total of SAR 35 billion ($9.3 billion) in revenue is expected during the first year of applying the tax in the kingdom.