A presidential decree approving the UAEs new value added tax (VAT) was issued by Sheikh Khalifa bin Zayed al-Nahyan on 28 August, according to a statement on the finance ministrys website.
The decree sets the general rules for the implementation of the new tax, which will be applicable from January 2018. It also offers some details regarding the goods and services that will be subject to VAT.
Full details of the scope of VAT implementation will be revealed in the laws regulatory framework, which is expected to be released by the fourth quarter of this year.
Earlier this month the UAE has issued the much anticipated tax legislation, paving the way for establishing the taxation system in the country and the levying of value-added tax (VAT).
The Tax Procedures Law, issued by the president laid the groundwork for the administration and collection of taxes and defining the role of the Federal Tax Authority (FTA).
The law defines a clear set of common procedures and rules to be applied to all tax laws in the UAE, namely, VAT and excise tax laws, and states the respective rights and obligations of the FTA and the taxpayer, according to a finance ministry statement. The new legislation covers tax procedures, audits, objections, refunds, collection, and obligations which include tax registration, tax-return preparation, submissions, payment and voluntary disclosure rules in addition to tax evasion and general provisions.