Workshop on VAT gets strong participation

The Dubai Free Zones Council and the Federal Tax Authority have organised an informative workshop on Value-Added Tax, VAT, that will be implemented in the UAE starting from 2018. The event drew the participation of more than 70 representatives of companies operating across Dubai’s various free zones.

With the aim of helping free zone entities fulfil their tax obligations, the workshop provided a comprehensive overview of the VAT and related mechanisms, the implementation timeline, products and services it will cover, as well as taxexempt sectors. The session clarified the impact of the new tax law on activities such as book-keeping as well as in the preparation of invoices and other financial documents.

Dr Mohammad Al Zarouni, Secretary-General of the Dubai Free Zones Council, emphasised the importance of the workshop for enabling entities operating in the free zones to prepare for full compliance with the new tax legislation.

He said, “Companies must take timely and effective measures to adapt their operations, financial management and information systems to the new tax environment. The necessary changes are also set to impact professional capacities — accountants will need additional training, and the job market may even see a surge in tax adviser vacancies.”

Dubai’s free zones have currently contribute a significant 33 per cent to the emirate’s GDP — on a par with global standards, Al Zarouni said. Nearly 39 per cent of this is generated by the emirate’s exports, with free zones playing a critical role in attracting foreign direct investment, he added.