Most companies in Hamriyah Free Zone and Sharjah Airport International Free (Saif) Zone have registered for the value-added tax (VAT), which will come into effect from January 1, 2018, said a senior executive.
“We have done a VAT seminar for our clients and we have already informed them about laws. We are also working with consultants who are assisting us in terms of compliance,” said Saud Salim Al Mazrouei, director, Hamriyah Free Zone and Saif Zone.
Replying to a question about how many companies have registered for VAT, Al Mazrouei said that it’s difficult to put down the numbers but most of them – if not all – have registered and those who have not yet done it will have to do so by the end of the month to fulfil the requirement of UAE laws. The two free zones house more than 14,000 companies from 156 countries with 35 per cent of them from India.
Al Mazrouei was speaking on the sidelines of ‘VAT Open World’ conference in Dubai on Sunday. The conference was organised by the UAE’s first English daily newspaper Khaleej Times in cooperation with The Institute of Chartered Accountants of India (ICAI) and supported by Qadi Accountants, a boutique advisory firm that provides services ranging from audit, accounting, advisory and taxation.
Al Mazrouei doesn’t see any major effect of VAT because five per cent is one of the lowest rates in the world.