“Uae Hogging in the Limelight of Vat - 1st January 2018”

Abstract

Purpose: This paper is an attempt to presents an overview, benefits and applications of VAT concept with the illustration, explains its features along with positive impact of its implementation in UAE. The paper is more focused guidance for industries like education, financial institutions and end users.
Design /Methodology/Approach- VAT studies covering GCC region is very limited so the research paper is conducted on the comparative, exploratory basis and qualitative method
Findings: The study concludes that VAT implemented in UAE will have a positive effect on economic development and competitiveness. The tax system which is introduced for first time in UAE is very transparent and it opens new sources of income for UAE which they will use of high-quality public services. Originality/Value-Value added tax; VAT is one of the tax implementation system in UAE, which was implemented from 1 January 2018 onwards. It is estimated that UAE government stands to earn approximately AED 12 billion in the first year of VAT’s implementation.1 Value added Tax is implemented on goods and services which is the source of economic revenue for government which will stimulates the GDP growth. This is a kind of general consumption charge, gathered steadily dependent on the expansion in estimation of an item or administration at each phase of generation or circulation.