Restaurants And Hotels Have Been Issued A Caution Regarding The New Taxes

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It’s been widely publicised; Dubai will see the roll out of Value Added Tax (VAT), beginning on October 1.

The tax will be affect only cigarettes, energy drinks and sugary drinks at this time.

On Wednesday, the government issued a caution to restaurants, hotels and shops; stocking up on the above goods now is pointless, taxes will need to be paid on any goods imported for you after the 1st.

Khalid Ali Al Bustani, Director-General of the FTA said today the UAE has worked with leading international companies to find a tax system that best fits the UAE, according to Gulf News.

Registration for companies was available from September 17 and the turnout has been positive. The majority of applicable companies have signed up and undergone the registry process, those who do not will face penalties, according to the report.

If you stock up on goods in advance, you’ll be required to register and pay tax on those goods

The government outlined the clear process for the implementation of the new taxes in the information session on Wednesday regarding the process for restaurants and hotels.

Cigarettes and energy drinks will be subject to 100% tax, fizzy drinks will be subject to 50%.

Later, on January 1, the UAE will see a full implementation of VAT on goods and services.

Tax will be capped at 200% of the original price

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