///UAE introduces 5% VAT on sales of goods and services
  • UAE starts charging 5% VAT

UAE introduces 5% VAT on sales of goods and services

2018-10-11T15:30:56+00:00October 10th, 2018|Compliance|

Earlier this year, UAE started to charge 5% value-added tax (VAT) on the sales of most goods and services, as a part of the Gulf Cooperation Council’s (GCC) plan to implement VAT in the region.

Dubai Customs has more recently published Customs Notice No. 1/2018 – Submittal of Customs Declarations & Required Documents. The release of the Notice is significant, as it is the first Customs Notice of the year and the first since VAT was implemented.

The notice came into force as of 1 September 2018 and has superseded Customs Notice No. 7/2010 and Customs Notice No. 15/2011. The document sets out the rules that the authority has implemented to make the processing and clearance of declarations more efficient.

Importantly, the document states that customers must submit all types of customs declarations and required documents within 14 days of completing the Customs declaration. Also, no claim for refunding paid customs duties or release of deposits given as a duty guarantee will be accepted, unless the declaration and required documents are submitted.

Further, the penalties under the Common Customs Law and Rules of Implementation will be applied on violations of the provisions of Customs Notice No. 1/2018.

Want to find out more?

Please do not hesitate to get in touch to know more about how Pagero can help you achieve and maintain compliance with local VAT/tax regulations.

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