The UAE cabinet on Monday approved the executive regulation, which is expected to provide final details on how VAT will impact various goods and services, a source told Zawya.
The United Arab Emirates cabinet on Monday approved the executive regulation of the value-added tax (VAT) that is expected to include all of the remaining details on the new tax's impact on goods and services, a source familiar with the matter told Zawya.
All six of the Gulf Cooperation Council countries agreed last year to introduce VAT at a standard rate of 5 percent on a number of goods and services. The UAE and Saudi Arabia have both said that they will apply VAT starting from January 1 next year.
“The UAE cabinet issued decree Number 52 of the year 2017 concerning the executive regulation of the Federal Law No. 8 of 2017 on value-added tax, which outlines [the] supply of goods and services in all cases, including supply in special cases,” a statement sent to Zawya from the source familiar with the matter said.
According to the statement, the VAT executive regulation will also define details on mandatory and optional tax registration, as well as tax groups, exemptions and details on deregistration.
It will also include details on the tax due dates, where charges will be incurred, tax refunds and penalties in case of violations
The source said the decision makes the executive regulation final. He added the regulation will be officially published on Tuesday.
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