A Study of V.A.T. in United Arab Emirates & Its Impact on Financial Services & Insurance Industry

• Published in: 2019 International Conference on Computational Intelligence and Knowledge Economy (ICCIKE) pp. 475 - 479
• Main Authors: Bala, Sabyasachi, Kumar, Hardeep, Nadeem, Mohammad
• Format: Conference Proceeding
• Language: English
• Published: IEEE 01-12-2019
• Subjects: and impact; financial services; insurance industry; socio-economic effects; Value added taxes levied
• DOI: 10.1109/ICCIKE47802.2019.9004399

GCC i.e. Gulf Cooperation Countries consists of 6 countries such as United Arab Emirates, Kingdom of Saudi Arabia, Oman, Qatar, Kuwait and Bahrain have implemented value added tax since January1, 2018. The amount of the VAT is 5% of some leisure articles. The main reasons behind are to reduce dependence on Petroleum and other hydrocarbons and natural gases as a source of revenue. It is a consumption-based tax that is applicable on special goods and services. The system is implemented not only to regulate tax function but also to create a significant way that a business transforms or runs and decreasing the various operational costs such as the cost of Information Technology, supply chain, cash flows, marketing and accounting so on. Various business processes should be monitored to assist the entire business operation. Within the last 2 decades United Arab Emirates the level and the standard of the business tends to be most successful and this country is becoming a successful economy based country. Many foreign companies from Europe, Asia and America and so on are investing their foreign currency at UAE to set up their own business as well as outsourcing. Here the term Foreign Direct Investment (FDI) appears which is used as an effective tool to increment of economic level and decreases the barrier and complicacy of trade. United Arab Emirates including the main Emirates such as Dubai and ABUDHABI, it is an attractive place and lucrative method for the companies where they are identifying their investment plan to start up their business.