Last week, UAE’s Federal Tax Authority extended the exemption period for administrative penalties for late VAT registrants until the end of April. The decision was made in an effort to help businesses get ready for the five percent levy introduced on January 1.

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According to the Federal Tax Authority, about 260,000 companies out of an estimated 350,000 have already registered for VAT. Companies that have not yet registered should make sure to get ready as soon as possible during this period, as one thing is clear and that is that lots of companies are still struggling with their VAT implementation. This is evident in all the incorrect receipts, invoices, and advertisement we see out there.

Aside from registering and becoming ready to collect VAT, companies must adjust their financials, processes, and systems to be fully ready.  companies that don’t take the appropriate measures are more susceptible to negative cash flow impact, reporting issues, and worse yet, hefty fines.

Our experts have advised and helped the largest companies in the region get ready.  Our approach is comprehensive and covers finance, IT, and overall company training.  Our professionals are all senior tax professionals with decades of experience. For VAT support, consultations, and inquiries contact us on vat@nuummite.com.