Title: Value-added tax in the GCC countries: evidence from UAE

Authors: Nizar M. Alsharari; Adel Almasarwah; Ahmed Al-Omush

Addresses: Accounting Department, College of Business, Jackson State University, USA ' Accounting Department, Business School, Georgia College and State University, Milledgeville, GA, USA ' Accounting Department, College of Business Administration (COBA), The American University in the Emirates, UAE

Abstract: This paper aims to examine the determinants of VAT in the UAE and the readiness of the UAE. It also provides a brief history of VAT, differentiating between the original terms of Sales Tax, VAT, and Excise Duty, which can be confusing for many people around the globe. The paper examines significant determinants of VAT revenue, how it is calculated, and reviews some international VAT implementation experiences. Moreover, it clarifies why the GCC countries introduced VAT as an alternative national income, the current situation, and the expected VAT implementation date. The study concludes that most businesses should be prepared for VAT and VAT registration and achieves the government's requirements to comply with VAT laws and regulations. Additionally, the paper highlights that UAE and other GCC countries are taking giant steps in economic income diversification. The GCC governments follow a complete restructuring finance strategy supported by the economic alliance to identify and face their challenges. The introduction of VAT was one of the significant decisions, and they carefully planned every step to ensure the success of introducing the tax to their countries.

Keywords: value-added tax; VAT; tax revenues; resource revenues; tax reform; UAE region.

DOI: 10.1504/IJEBANK.2023.134487

International Journal of Electronic Banking, 2023 Vol.4 No.1, pp.28 - 44

Received: 12 Oct 2022
Accepted: 08 May 2023
Published online: 24 Oct 2023 *

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