The tax is a term which is used to describe the amount of money paid to the government by the companies. Different countries have different methods to ensure that tax is being paid but what is essential to understand that there are different types of taxes implemented in the systems.
Recently there have been changes in the way businesses operate in the Gulf region because of the introduction for the Value Added Tax (VAT) system in all member countries. Since the time The Gulf Cooperation Council (GCC) has announced this business is trying to prepare and undergo changes to adapt to the new system.
The implementation of taxes has been the talk of the Emirate region, but the law has imposed certain goods and services. There are certain goods and services which fall under the category of Zero Rate and exempted portion. If you own a business and is not sure if your products fall in which category then opt for the best Vat consultancy in Dubai to stay on track and follow the rules.
Zero rated goods are the ones on which the government has currently set the value equals to ZERO. The examples of products that fall under this category are food, books, water, footwear and kid’s cloth. On the other hand, exempted items from the VAT category are on which the VAT is not charged and still might need to record on the VAT return. Such products are property, post services, health, and gaming. The VAT is a novel concept in the UAE industry, and many companies are still struggling to figure out their way.
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