Three Things UAE SMEs Need To Do To Prepare For VAT In 2018
It’s no longer a surprise that the GCC region will introduce the Value Added Tax (VAT) effective January 2018. The introduction of a VAT system in the UAE will not just affect consumers, it will also have a broader impact on businesses. Entrepreneurs and small and mid-size businesses will be forced to look at the suppliers for the goods and services they use to run their business, in order to determine the impact of VAT.
While the concept of tax is not new globally, for the businesses in the UAE this will have a significant impact on their business model and corporate structure, which may no longer be sustainable as a result of VAT. In general, tax is a method used by several governments to raise revenue for public services. These revenues raised are generally used to service public hospitals, schools and universities, defence and other important aspects of daily life.