The Finance Ministry, announced on November 27, 2017, that Vice-President and Prime Minister of the UAE and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, signed the Executive Regulation regarding the Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT). It explains 5% VAT rate will be imposed on import and supply of goods and services at each stage of production and distribution. This VAT rate is to be effective from January 1, 2018. All companies have to take all important steps to avoid non-registration risks by January 1, 2018. Otherwise, companies will face penalty under Cabinet Decision No. 40 of 2017. Majority of small and medium enterprises (SMEs) have now come to a realization that VAT will not be delayed and are now make hurry to implement it in order to catch up with the January 1, 2018 deadline.
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