Tag Archives: value-added tax

In a wide-ranging TV interview to mark the fifth anniversary of the Saudi Vision 2030 strategy, Crown Prince Mohammed bin Salman has identified increasing home ownership and falling unemployment as two signal achievements, ruled out introduction of income tax and described the current 15 percent value-added tax (VAT) as a …

Saudi Arabia’s government is suspending the cost of living allowance and raising the value added tax (VAT) threefold, as part of measures aimed to shore up state finances, which have been battered by low oil prices and the coronavirus. “Cost of living allowance will be suspended as of June first, …

It happened again today. I bought my lunch at an international hypermarket — I shall not say where. The cost was Dh15.30 and I gave the cashier Dh16. She gave me 50 fils in change. Where, I wondered, did the other 20 fils go? I am but a single stalk …

The UAE Cabinet on Sunday has approved a decision pertaining to the refund of VAT on organisations involved in organising exhibitions and conferences. The decision stipulates that facilities operating in the exhibitions and conferences sector are entitled to refund VAT imposed on the provision of services required for setting up …

The UAE has rolled back the 5 per cent Value Added Tax (VAT) on gold and diamond sectors at the wholesale level. Retailers will continue to impose 5 per cent on all jewellery transactions taking place at their shops. But the move, announced by the UAE Cabinet, could set off …

Almost all, or 98.9 per cent, of the companies in the UAE required to file tax returns have done so on time. according to Khalid Al Bustani, director-general of the Federal Tax Authority (FTA). However, Al Bustani, who spoke to media to mark the first 100 days of VAT in …

The GCC’s non-financial corporate sector is expected to face pressure on profitability resulting from fiscal consolidation efforts in the current year and the next, according to ratings agency Moody’s. “GGC governments have done fairly well in balancing reform implementation while preventing any systemic shock to the corporate sector. However, fiscal …

The Landmark Group has taken its first step into supermarket-type retailing in the UAE with the launch of four “food discounter” stores under the “Viva” brand. But unlike mainstream super/hypermarket chains, Viva will only focus on food retailing — freshly prepared and packaged — and at steep discounts to prices …

Saudi Arabia has reported a sharp rise in inflation on value-added tax (VAT) and subsidy reforms with inflation accelerating to 3 per cent in January. Consumer price inflation in Saudi Arabia strengthened to 3 per cent year on year in January, after seeing deflation of -1.1 per cent in December …

Banks across the Gulf Cooperation Council (GCC) are expected to see stabilisation of the financial profiles and performance from the second half of 2018 after two years of significant pressure, according to S&P Global Ratings. While analysts expect to see further easing of liquidity and funding with improvement in asset …

Fifteen shops in Abu Dhabi were shut down in January for unjustifiably hiking the prices of goods after the introduction of the Value Added Tax (VAT), officials said yesterday. The Department of Economic Development, DED, shut down the commercial facilities as part of the department’s efforts to follow up on …

Despite the recent rise in costs, Dubai still offers the best option in the region for developer margins, according to a top official at Damac Properties. “Whether it’s Saudi Arabia or Jordan, the margins are half of what is there in Dubai and it’s how it will continue to be,” …

With more and more of developers’ payments plans starting to look alike, warning signs are starting to flash in Dubai’s property market. It will do good for everyone in the real estate sector to start heeding the signals, according to a senior official at JLL, the consultancy.  “Someone could buy …

Input costs for UAE’s private sector businesses rose at the fastest pace in 74 months during January, primarily as a result of the rollout of VAT. But across the board, businesses were able to report a fairly strong start to the year, according to the latest Emirates NBD Purchasing Managers’ …

Merchants across the UAE enjoyed a surge in sales during the last quarter of 2017, as consumers cashed in ahead of the implementation of value-added tax (VAT) and store discounts hit as much as 90 per cent. The rise in spending has opened up a lot of opportunities for jobseekers, …

The Levant News Exclusive – by Mohamad Hassan -Dubai – The UAE is considered the second-largest economy in the Arab world (after neighboring Saudi Arabia) and a regional business hub with economic growth of 1.4% in 2017 and a positive economic outlook in 2018. Moreover, it ranked 16th in the Global …

Abu Dhabi’s Department of Economic Development (DED) is cracking down on businesses that are overcharging customers in the name of VAT (Value Added Tax), a senior Abui Dhabi official from the department said  on Tuesday. “We issued some fines in the first week either for collecting tax when businesses are …

The Ministry of Finance stated that adopting value-added tax (VAT) in the UAE will have a positive effect on its development and competitiveness — and will contribute to building a sustainable knowledge-based economy for future generations, as the tax will provide additional financial resources and enable the UAE government to …

All the glitter has gone out of the UAE’s gold and jewellery sales since the start of the year, with leading retailers confirming sales declines — in volume terms — by more than half of what it used to be in the fourth quarter of 2017. Average daily sales are …

The Federal Tax Authority (FTA) calls on citizens and residents to be wary of uninformed and unreliable sources of information who are circulating misleading information around the introduction of VAT in the country. The FTA emphasizes on the importance of referencing and checking accurate sources of information, such as the …

Don’t pay extra when buying mobile phone prepaid recharge cards, telecom companies told customers on Wednesday. The five per cent value-added tax (VAT) introduced in the UAE on January 1 is applied on goods and services that come under the purview of VAT law. Telecom companies are charging five per …

The first day of the implementation of the five per cent value added tax (VAT) in the UAE dawned with many residents taking their first purchase with VAT in stride. Value Added Tax (VAT) came into force from yesterday in the country and most of the consumers who turned up …

Retailers are in a buoyant mood in the final week before the implementation of VAT (value-added tax) on January 1. They say December has seen higher sales than the last few months. Stanly Joseph, group area manager at Al Rais Group, said that many people have been buying home and …

Oman’s Ministry of Finance has postponed the decision to implementation of Value-Added Tax (VAT) until 2019. The application of the selective tax on certain products will start by the middle of 2018, the ministry said. No further details have been given about the postponement by the Omani authoirites. In November, …

Retailers need to display the total price of their products inclusive of VAT on price tags, a senior official said. Khalid Al Bustani, Director General of the Federal Tax Authority (FTA), said that all retailers must update all their prices in time for the VAT kick off on January 1. …

UAE’s retail landscape is expected to grow at a rate of 3 per cent in 2018, improving slightly over the current year and reaching a value of Dh196 billion, analysts told Gulf News pointing out VAT implementation will have a minimal impact due to low rate of 5 per cent; …

Tourists to the UAE will be able to claim back the value added tax (VAT) on purchases they make whilst visiting the country, according to the recently released executive regulations by the Federal Tax Authority (FTA). The regulations do not, however, go into details on how this process would work. …

Nearly half of the UAE’s restaurants and cafes expect their sales to decline further in 2018 due to oversupply, according to a new report from consultancy KPMG released on Tuesday. Despite the fact that people continue to spend the same amount on food and drink as last year, the report …

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved the executive regulations of Federal Law No.8 of 2017 on Value Added Tax (VAT). The bylaws govern the implementation of VAT, which will come into effect from January 2018. …

Here in the UAE, we have a comfortable history of (legally) not paying taxes. We all know that will official end on January 1, 2018 with the introduction of the value-add tax (VAT). Sure, we’re already paying taxes on sugary drinks and tobacco, but those are things you can do …