Dubai – Mubasher: The introduction of the value-added tax (VAT) in the UAE has given the small- and medium-sized enterprises (SMEs) an opportunity to update their processes and governance.
The new tax has enabled SMEs, through its requirements, to study VAT regulation, review their internal systems, and achieve better customer engagement, according to a report released on Monday by Al Dhaheri Jones & Clark.
“VAT offered an opportunity for many companies to review and audit their business practices, make use of digital tools, and cut costs on unnecessary expenses,” Al Dhaheri Jones & Clark’s general manager Mohammed Fathy said.
UAE’s SMEs are crucial to the GCC growth, in which they are expected to achieve a 156% growth in the coming five years to $920 billion (AED 3.38 trillion), as a study conducted by MENA Research Partners (MRP) showed.
“While VAT compliance mandates SMEs to integrate and report in accordance with the Federal Tax Authority (FTA) rules, it also requires businesses to implement practices that comply with these rules,” Fathy commented.
