Sale!

The Impact of VAT Implementation in the UAE: Business Responses

Original price was: £2.99.Current price is: £0.00.

Learning Objectives

  1. Understand the rationale behind the implementation of VAT in the UAE and its impact on government revenue.
  2. Analyze the challenges faced by businesses during the transition to a VAT system and the strategies they employed to ensure compliance.
  3. Evaluate the sector-specific impacts of VAT and how different industries adapted to the new tax regime.
  4. Discuss the broader economic implications of VAT implementation, including its effect on consumer behavior, inflation, and the UAE’s business environment.
  5. Explore the lessons learned from VAT implementation in the UAE and their relevance to other countries considering similar tax reforms.

ADDITIONAL REFERENCES/READINGS BY THE AUTHOR

Description

UN SDGs:

SDG 8: Decent Work and Economic Growth

SDG 9: Industry, Innovation, and Infrastructure

SDG 17: Partnerships for the Goals

INTRODUCTION

On January 1, 2018, the United Arab Emirates (UAE) implemented a Value Added Tax (VAT) at a standard rate of 5%, marking a significant shift in the country’s fiscal policy. The introduction of VAT was a part of the Gulf Cooperation Council (GCC) agreement, driven by the need to diversify government revenue streams away from oil dependency. This case study explores the impact of VAT implementation on businesses in the UAE, focusing on how companies responded to the new tax regime, the challenges they faced, and the strategies they employed to comply with the new regulations. The study also examines the broader economic implications of VAT on the UAE’s business environment and consumer behavior.