VAT has been implemented in the UAE and KSA from January 1st 2018,as mandated by the GCC. 5% VAT will be implemented on the supply of goods and services. It is mandatory for businesses to maintain books of records for a minimum of 5 years henceforth. Read on to get answers to any questions you may have related to VAT. What is VAT? Value Added Tax (VAT) is a general consumption tax which will be levied on the majority of transactions of goods and services. It is charged at every point of sale, from manufacturing to sale to an end consumer. The mechanism of input tax deduction ensures that the businesses act as tax agents or tax collectors on behalf of the government by collecting tax from the end consumers, account the collected amounts and pay the tax. This is achieved by adjusting the tax paid on purchases referred to as ‘Input Tax Credit’ or ‘Input VAT’ with the VAT collected on sales referred to as 'Output VAT.'' If there is any balance liability
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Showing posts from April, 2018