Value Added Tax (or VAT) is an indirect tax. It was introduced in the UAE on 1 January 2018. VAT is a new source of income for the UAE thus ensuring the provision of high-quality public services. Our collaboration with some of the best VAT experts in Dubai guarantees professional VAT Consulting Services in Dubai, reporting and filing.
VAT is one of the most common types of consumption tax found around the world. Over 150 countries have implemented VAT, including all 29 European Union (EU) members, Canada, New Zealand, Australia, Singapore and Malaysia.
VAT is the tax on the value added to the commodity at each stage in the production and distribution chain. It is a system to collect tax on the value at the final or retail point of sale. VAT is a consumption tax because it is borne ultimately by the final consumer of goods. Contact Vat Consultants in Dubai for more
The VAT due on any sale is a percentage of the sale price but from this, the taxable person is entitled to deduct all the tax already paid at the preceding stage. Therefore, double taxation is avoided and tax is paid only on the value added at each stage of production and distribution. In this way, as the final price of the product is equal to the sum of the values added at each preceding stage, the final VAT paid is made up of the sum of the VAT paid at each stage.
To understand VAT further, please view our PDF File or visit https://www.tax.gov.ae/ar/index.aspx or https://www.mof.gov.ae/en/resourcesAndBudget/Pages/vatquestions.aspx