"VAT for the Import and Export Sector and Registration Mechanism" was the title of an awareness workshop organised by the Abu Dhabi Chamber of Commerce and Industry, in cooperation with the Federal Tax Authority, on Sunday to spread awareness amongst import and export companies on the mechanism of applying the value added tax in the country.
"Up to 85 percent of world countries apply VAT and in the UAE it will impact all consumer staples, with only four services to be exempted: financial services, undeveloped land, local transport and houses, in order to prevent any price hikes," said Saeda Al Qayoumi, FTA Tax Advisor.
The tax will impact some medications that are not directly used for treatment, she noted, adding that VAT on direct and indirect exports will be zero, while input tax can be fully recovered if it relates to a taxable supply made (5% or zero-rated supply).
There will be special tax rules on commodities transported into the GCC region, she added.
The workshop was attended by Abdullah Ghurair Al-Qubaisi, Deputy Director General of the Abu Dhabi Chamber of Commerce and Industry and the chamber's top executives.