VAT is a type of an indirect tax that is applicable in more than 180 countries of the world today, on all the consumption of goods or services imposed at the time of sale.
It has also been made mandatory in the UAE region and thus, all businesses in the area need to submit their respective application to register for VAT before the impending deadline. The rate of VAT will be levied at 5% with an idea that the VAT will facilitate a new income source for the UAE that will further be utilized and help in providing eminent public services.
With the implementation of VAT in the UAE market, things are definitely expected to change for the good. This shall provide the UAE with a new income source, which will be continued to be utilized to provide high-quality public services. It will also help the government move towards its vision of reducing dependence on oil and other hydrocarbons as a source of revenue. Just as is the case with any taxation, in case of VAT as well, the benefit will ultimately get back to the people of the region in terms of enhanced growth of the nation and increased opportunities. And though, there have been several speculations on the expenses being increased for people due to inflation, experts believe that VAT will prove to be beneficial in the long run.