Adding Value - The impact of VAT on Construction Projects
Towards the end of 2017 and the realisation that the proposed introduction of VAT to the UAE was going to happen, you might remember a discernible uplift in cash flow as companies invoiced and billed to beat the 5% levy about to be incurred. That was, of course, a short-lived blip whereas the forecast benefit in VAT revenue for the UAE was likely to be somewhere in the region of a 1.6% increase in the regions GDP.
A little over a year later, VAT is still relatively new in the country but rapidly becoming embedded part of everyday life in the UAE. It is not unlikely that some business owners, including those in the construction sector may struggle to understand their responsibilities in terms of VAT. It is already apparent that it is potentially very confusing with many pitfalls. Fortunately, there are tools designed to help construction professionals in dealing with VAT and any other form of change or development in all types of taxation. Software designed and developed to incorporate and calculate tax for you have been in use all around the globe and such tools exist specifically for construction companies and contractors. Indeed CCS BuildSmart could be the answer to your VAT questions and more.
