Member Abdulaziz Al Zaabi also asked if the ministry had included expected revenues from the soon-to-be introduced value added tax (VAT) in its plan. “We are in the last stages of signing the VAT-related agreements with the GCC and it will be applied in 2018,” the Finance Minister said. There were many speculations as to the revenues it would bring, he said, for instance, in the first year, it was expected to yield Dh12 billion, and up to Dh20 billion in its second year. Source: Draft law for UAE 2017 federal budget approved | The National
According to surveys not many businesses have an adequate accounting systems to deal with VAT. Besides that lots of businesses lack the VAT knowledge of how a VAT works. Investments and training are needed to be ready in time.
To get VAT ready the following actions should be considered.
- Assess the business impacts
- Amend IT systems and business processes to the new situation forecasted and
- Review existing contracts and set rules for new contracts