UAE issues tax and VAT law procedures

Thu 3rd Aug 2017

The GCC state of UAE has this week issued a tax Law covering common procedures for taxes. This covers a number of issues related to VAT, which is due to be implemented from 1 January 2018.  The Law covers tax procedures, audits, objections, refunds, collection, and obligations – which include tax and VAT registration, return preparation, submissions, payment and voluntary disclosure rules – in addition to evasion and general provisions

It is anticipated that the UAE will issue its draft VAT law and regulations within the next few weeks. Saudi Arabia, the other GCC state launching VAT at the start of 2018, issued its VAT laws and regulations last week. The remaining four states of the GCC will likely roll out their VAT regimes during the year.

The law, Federal Law No. 7 of 2017 for Tax Procedures, includes the following principles in relation to VAT:

  • VAT registered businesses must maintain accounting and invoice records to support their taxable transactions and returns
  • Records must be maintained in Arabic
  • Any business providing taxable supplies must register for VAT, and submit returns and remittances on prescribed timetables
  • Only tax authority-registered tax agents may represent companies in tax affairs
  • The tax authorities may perform audits on any registered businesses


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