Ministry of Finance launches phase one of tax awareness workshops in the UAE

The UAE Ministry of Finance has launched the first phase of its awareness and education workshops that will prepare businesses for the new tax system that will be introduced by the end of this year, in the case of excise tax, and early next year for value-added tax.

As the UAE prepares to introduce both taxes at around the same time as the rest of the GCC, the workshops will ensure that businesses fully understand the new system and that they have the knowledge they need to take the necessary measures to comply with the new tax laws and procedures.

His Excellency Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, said: “The Ministry of Finance adheres to the highest standards of quality, transparency, and efficiency in its efforts to provide businesses with the necessary knowledge and tools to comply with the new tax system. These workshops also serve to underline the importance of the new tax system as a necessary step towards securing a sustainable future for the UAE, while making sure businesses are fully prepared to file their tax returns and adapt to the new tax law.”

The first workshop targeted so-called ‘multipliers’ – government entities such as chambers of commerce and departments of economic development, and the consultancies, and partners. The workshop was held in Dubai and attracted more than 500 attendees, and explored the new tax system from various angles, detailing the supporting role that various stakeholders are expected to play as the system enters its implementation phase.

The Ministry of Finance has uploaded a timetable onto its website, detailing the dates and venues of all workshops and the targeted audience. Businesses can therefore choose the workshops they wish to attend based on their sector and size, as well as availability. The registration link is as follows:

https://www.mof.gov.ae/Ar/Pages/Workshops.aspx

Value-Added Tax (VAT):

Businesses across the UAE are expected to thoroughly document their finances and to keep accurate accounting records, updated on a regular basis. Companies whose annual revenues from goods and services subject to VAT that exceed the threshold determined by the tax law will be required to register with the Federal Tax Authority.

Those businesses whose revenues fall short of the threshold are also advised to keep updated accounting records; these records can later be used as a reference if and when these businesses need to register with the authority.

Businesses will be given till the end of 2017 to prepare for the VAT system before the tax law goes into effect early next year. The Excise Tax, too, is set to be implemented by the end of 2017 and businesses that are set to be affected by the tax are expected to prepare for it before then by reviewing and amending their operations, financial management, record-keeping, and electronic systems.