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" Entering the second phase of the Value Added Tax (VAT) project, does not mean that the implementation of the tax will be soon, because the process may take one year or more, due to the need to apply it in a professional manner and to meet, or even surpass international standards," said a spokesperson for the Dubai Customs, in a Press release yesterday, clarifying the situation on VAT study, after some media reports mislead the public opinion in recent days.
The VAT would be a substitute for customs duties, which are expected to be abolished when the Free Trade agreements with major trading partners of the UAE are implemented.
The Dubai Customs said that the second phase includes the transition from the study of the best global practices to the implementation stage of the project.
This phase will include also the completion of the legal aspects, and the start of the groundwork process of its infrastructure, especially the collection of taxes.
The second phase also includes the training of the involved personnel in the UAE, as well as the preparations for a major media campaign aiming at raising awareness among taxpayers and consumers.
The studies conducted by Dubai Customs took into consideration the best global best practices in this field, to make sure that the application of the new system would not cause any burdens on traders and investors.
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