Value Added Tax and its impact on Contracts Dealing with Contracts in VAT Environment With VAT in our home countries and the moderate rate of 5% is unlikely to act as a deterrent to investment in the UAE. However, it is interesting to see how the VAT will impact the contracts. These contracts may or may not have any provision for recouping any direct or indirect costs levied under the new tax legislation. As such for contracts without adequate provisions for recouping costs, the costs will likely be absorbed into the project accounts which could potentially result in loss making projects where profit was once forecast. On the other hand, if contracts have sufficient provision to enable contractors to recover costs from employers, there may be a rise to legitimate claims for VAT on top of historic payment entitlement. With six months to go, it is advisable for contractors and subcontractors to get their contracts reviewed. In order to understand VAT on this issue ...

Avoiding Fines, Penalties while Managing Value Added Tax in United Arab Emirates Fines and Penalties Directory in UAE regarding Value Added Tax As the cost of doing business increases in Gulf Region (this article focuses on United Arab Emirates) it also comes with add-ons/ top-ups of fines and penalties. Why I termed the Fines and Penalties as Top-up or add-on because when you pay fine for some mistake, non-compliance, tax theft, tax embezzlement, tax omissions, and paying such fines/ penalties does not exempt the taxpayer/ taxable person from paying the actual due tax as per tax law in United Arab Emirates. There are 2 sections for this one is the Fees for Services provided by the Federal Tax Authority and Administrative Penalties for Violations of Tax Laws in the UAE . Federal Tax Authority’s Service Fees Cabinet Decision No.(39) of 2017 on Fees for Services Provided by the Federal Tax Authority outlines the fees to be collected for the services provided by the FTA...

VAT Readiness in KSA, Saudi Arabia Value Added Tax in Saudi Arabia and how to manage it effectively. Ever since the Value Added Tax is promised to be launched/ levied in Gulf Region there are free VAT training sessions, seminars, workshops, VAT implication assessment, impact analysis, awareness sessions organized both by private as well as public sector in order to educate the public who is finally going to be affected by Value Added Tax in Saudi Arabia. With it is the Value Added Tax Readiness assessment which is a prerequisite to long road to Value Added Tax journey. Here is how we can help you in knowing your VAT (Value Added Tax readiness) in Saudi Arabia. Our team of highly experts from different countries is all-prepared, to buckle your seat-belts before you take-off for your VAT Journey. Hire us as your VAT Readiness Team and our team of experienced consultants will act as VAT Assessers to conduct off-site and on-site visits to large Saudi companies. The Ass...