It is likely to be humid by night and Friday morning over some coastal and internal areas
In a workshop at the University of Wollongong in Dubai, UOWD, on the new tax law, Drum said that VAT has been implemented by more than 150 countries worldwide.
Referring to local job openings, Drum said VAT brings good news to current finance and accounting students and graduates as this form of taxation will create ample employment opportunities.
Government revenues from taxation are generally used to pay for public services including public health services, publicly owned or funded schools, parks and transport infrastructure.
"The UAE will apply a VAT rate of 5 per cent on taxable supplies which is very low in comparison to the average tax rate of 19 per cent globally. However, not everything will be charged VAT as the law makes provision for zero-rated and tax exempted goods and services to ensure that the impact of VAT on consumers is kept to a minimum," Drum explained.
The consumer will be taxed on goods such as electronics, smartphones, cars, jewellery, certain beverages, financial and accounting services, legal services, dining out and entertainment. However, certain services and goods, such as nearly 100 food items, basic health services, transport and public education, will be exempted from VAT.
Drum explained that the difference between zero-rated and exempt tax is that suppliers of zero-rated goods and services are eligible to reclaim their input VAT, whereas suppliers of exempt goods are unable to do so. Zero-rated and exempted goods and services have no direct impact on the consumer.
Businesses with a minimum turnover of Dh375,000 are required to register for VAT, while companies with a turnover of below the mandatory threshold but exceeding the voluntary registration threshold of Dh187,500 have a choice to register. Voluntary registration will be especially beneficial to start-up businesses with no turnover at present. It is essential for VAT registered businesses to keep their business records as proof of tax charged and VAT they have paid to the government.
It is likely to be humid by night and Friday morning over some coastal and internal areas
The Abu Dhabi Awards winner encourages everyone, regardless of their land size, to engage in farming
Geopolitical tensions, economic data likely to affect yellow metal's prices, expert says
The early age for first period is associated with many factors such as higher socio-economic status, obesity, nutritional status and general health
Hundreds of social workers and volunteers are working round the clock, providing essentials to those affected by the unprecedented rainfall
The floodwaters spared nothing, soaking their furniture, rendering household appliances useless, and destroying the newly-purchased school books
Second-placed Liverpool remain three points behind Arsenal, who have a vastly superior goal difference
The in-form Italian will move to within 330points of World No 1 Djokovic if he wins his fourth trophy of 2024 at the Madrid Open