March 2017/16: The UAE Federal National Council approves the Federal Tax Procedures law
VAT to apply as from 2018
On 15 March 2017, the United Arab Emirates Federal National Council approved the draft law that will regulate the implementation of value added tax (VAT) in the United Arab Emirates (UAE). Once enacted, this law will provide the framework for the interaction between the federal tax authority (FTA) and taxable persons in the UAE. The VAT is scheduled to come into effect on 1 January 2018.
The Ministry of Finance recently published details on VAT registration and compliance requirements on its website and announced that businesses will be able to submit applications online three months before the implementation of VAT (i.e. from October 2017). Registered businesses will be expected to submit VAT returns on a regular basis, with most businesses required to file quarterly.