Prior to the implementation of VAT, retailers were urged by the government not to increase prices in the name of VAT. But that hasn’t been enough till now to prevent businesses from using the new VAT law as a pretext to increase their prices. Of course, UAE residents have been vocal on social media, reporting these cases to the FTA.

As a preventive measure, the DED (Department of Economic Development) collected price details of products in 2017 from retailers and will verify in the first quarter of 2018 to ensure that prices have not been increased beyond the permitted level.

Registering for VAT was the first step, to be compliant, companies must ensure that their pricing doesn’t exceed the permitted limit that reflects the VAT rate of 5%. Those that fail to do so, and continue to charge prices above the permitted limit, are susceptible to hefty fines.

To ensure that your business is compliant with the VAT law, companies might also have to apply changes to their financials, processes, and systems, as well as ensure that their accounting departments have had the right training.

For VAT training, 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.

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