Dubai: An amendment to the Value Added Tax (VAT) law has been announced in the UAE. The changes will come into effect from January 1 next year, including exemption from VAT registration for firms dealing only with zero-VAT products.
UAE The Ministry of Finance has announced the amendment in the Federal Order related to Value Added Tax. The law change is based on the VAT agreement and suggestions received from the business sector in the context of the experiences of the previous years related to taxation. Establishments dealing only with zero-value-added products and services, if they are currently registered under the VAT system, can apply for exemption from registration under the new rules.
Exports, education services, health services and house rent are the business sectors that are subject to zero VAT. The important changes in the new amendment include setting the time limit for submission of tax credit note as 14 days for the tax payable based on the deadline of the invoice. Under the amendment, the authority will also be empowered to compulsorily cancel the registration of a company.