FTA praises shipping, logistics sectors on VAT

The shipping, customs clearance and logistics sectors showed a high level of responsiveness and cooperation in the implementation of value-added tax (VAT), Federal Tax Authority (FTA) officials said in a statement on Wednesday.
Officials made the comments in VAT awareness workshop attended by nearly 670 stakeholders from companies in the sectors.

The workshop talked the anticipated effects of VAT on internal and external trade in the UAE, and looked at ways to ensure smooth implementation of the new tax, which came into force on January 1.

The FTA’s team gave a detailed presentation outlining the mechanisms of implementing VAT, as well as the approach to cooperation and coordination between the Authority and its strategic partners from the public and private sectors.

Participants praised the workshop, the FTA said in the statement, and asked for more seminars in the near future to streamline communication and ensure talks around issues that might arise.

All companies with an annual turnover have been required to register for VAT. More than 360,000 firms have done so, the FTA reported on Tuesday.

Earlier this month, the FTA issued detailed guidelines on how VAT would apply on trade between tax-exempt “designated zones” — 20 trading areas located within the UAE, but considered outside it for tax purposes — and the rest of the UAE.

Designated zones differ from other free trade zones in that they are fenced, and have security measures and customs controls.

The FTA said goods transported between designated zones would be exempt from VAT so long as they complied with UAE Customs Law, and no part of a shipment was release, used or altered during the transfer.

Goods originating from a designated zone and intended for consumption in the UAE would be subject to VAT.

VAT enhances competitiveness of the UAE private sector regionally and globally: Federation of Chambers

DUBAI: The Federation of UAE Chamber of Commerce and Industry affirmed that the implementation of value-added tax (VAT) would contribute to enhancing the competitiveness of the UAE private sector regionally and globally in accordance with the standards applied in international organisations and institutions.

During the Federation’s first joint meeting held in Dubai, Hamid Mohammad Bin Salem, Secretary General of Federation of Chambers of Commerce and Industry, said that the chambers of commerce and industry are seeking to form sectoral legal committees to coordinate with the competent authorities in the country regarding the legislation and laws related to the private sector, which will become complementary to the legislative environment in the UAE.

He pointed out that the plan of the Federation for the current year includes the launch of a new identity through creating media and marketing identity for the Federation and defining the role and services provided to the private sector.

Source:http://gulfnews.com/business/economy/vat/fta-praises-shipping-logistics-sectors-on-vat-1.2162564

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