Dubai – Mubasher: The value-added tax (VAT) will not adversely impact firms’ decisions to invest in Dubai or the UAE, Emarat Al Youm reported, citing CEO of Dubai Investment Development Agency (Dubai FDI) Fahad Al Gergawi.
Companies will only need for three months to get used to the VAT, Al Gergawi noted.
Dubai FDI is positively looking forward to introducing the VAT, he stressed, adding that it will provide audited financial statements of companies in the UAE.
The CEO highlighted that the VAT will direct 70% of its revenues to local governments in an effort to help upgrade the UAE's infrastructure and services, that in return would attract more investments to the country.
According to the initial indicators, the UAE has lured approximately AED 26 billion foreign direct investments (FDI) in 2017, he remarked.
The top official further noted that several local and global firms, mainly European and Asian companies, have extended their investments in Dubai during 2017.
On 1 January, the UAE has put 5% VAT into effect.
The UAE is expecting VAT revenues from all goods and services to reach around AED 10 billion to AED 12 billion ($2.7 billion to $3.2 billion) in the first year.
