DUBAI, Jan. 6 (Xinhua) -- The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) in Abu Dhabi has called on Saturday in an emailed statement on citizens and residents of the Gulf state to be wary of "uninformed and unreliable sources of information" in relation to the five percent value-added tax which the UAE and Saudi Arabia have implemented on January 1, 2018.
The FTA also warned of circulating "misleading information," emphasizing the importance of referencing and checking accurate sources of information, such as the statements issued by the Ministry of Finance and the Federal Tax Authority.
It urged citizens and residents of to source their information from the FTA's official website and through the official social media account.
"The FTA's official website is continuously updated with comprehensive, detailed and accurate information and answers to tax related questions and inquiries in the UAE," said the statement.
Nearly all goods and services in the UAE are affected from the VAT scheme, from electricity bills to shopping baskets, with the exception of education, healthcare and some other services such as train and flight tickets. Business which registered a turnover of above 100,000 dollars in the last 12 months had to register for VAT, otherwise they are exempted from doing so.
According to Dubai-based economist Dr. Nasser Saidi, "UAE government is projected to collect 12 billion dirham (3.27 billion dollars) in 2018 from the new tax and 20 billion dirham (5.45 billion dollars) in 2019, rising to 1.5 percent of gross domestic product over next three years."
