Dubai Customs Clarifies Information on the second phase of VAT

After the false information circulating among several media outlets regarding the Value Added Tax (VAT) Study Project in the UAE which mislead the public opinion, Dubai Customs Clarifies the following: Dubai Customs launched last November the second phase of the Value Added Tax (VAT) Study Project, in order to apply on time the proposed system for the tax.

The second phase includes the transition from the study of the best global practices to the implementation stage of the project.

This phase will include also the completion of the legal aspects, and the start of the groundwork process of its infrastructure, especially the collection of taxes.

The second phase also includes the training of the involved personnel in the UAE, as well as the preparations for a major media campaign aiming at raising the awareness among taxpayers and consumers.

Entering the second phase of the VAT Project, does not mean that the implementation of the tax will be soon, because the process may take one year or more, due to the need to apply it in a professional manner and to meet, or even surpass the international standards.
The studies conducted by Dubai Customs took into consideration the best global best practices in this field, to make sure that the application of the new system would not cause any burdens on traders and investors.

The VAT would be a substitute for customs duties which are expected to be abolished when the Free Trade agreements with major trading partners of the United Arab Emirates are implemented.

Dubai Customs invites all media outlets to contact the Media and Public Relations section at Dubai Customs to enquire and get the correct information on the Value Added Tax (VAT) Study Project . (VAM)