After what turned out to be a slow summer, talk of VAT was re-energised with the issue of the VAT legislation. Whilst this answered a number of questions, some still require answers and a few more have been raised. Our collective breaths therefore continue to be held as we all await the release of the Executive Regulations. In the meantime, companies are racing to ensure that they are as prepared as they can be and I would urge you all to ensure that you are so prepared – Our VAT team is awaiting your call! I urge you to read the write-up inside contributed by PKF’s member firm in Oman which clarifies some of the concepts in the VAT law.
Excise taxes became effective at the beginning of October, with tobacco, fizzy and energy drinks all being hit. And stockpiling before the deadline was negated by taxes being levied on excessive inventories in place at the deadline. There may be a slight dip in consumption in the initial period but it will be interesting to see if habits are impacted in the longer term.
We also feature in this issue a very interesting article on the liabilities of directors of limited liability companies in the UAE which I recommend all of you to read. And of course our usual free zone update.
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