UAE will not implement VAT for now

From what I'm reading in this report from Embiz 24/7, looks like the silver lining in the recession is no VAT in the UAE for now:

Hisham Abdullah Al Shirawi, Second Vice-Chairman of Dubai Chamber of Commerce and Industry, said he is not sure whether VAT will be implemented, adding that in times like these, the government is rather expected to lower its service fees[...]"I would expect the government to take certain actions to minimise governmental fees and the cost of operating business in the private sector so that it can be more competitive and much more active."

What do you think about VAT in the UAE?

Are you ready for VAT?

Ex-pats, get ready for VAT. The National reports,

The UAE will be ready to introduce a system of value added tax (VAT) by the end of the year.

Abdul Rahman al Saleh, the executive director of Dubai Customs, said the “infrastructure” for an Emirates-wide taxation system would be put in place between October and December.

Dubai Customs was commissioned by the Government two years ago to look into a potential VAT and is finalising the strategy. If implemented, it would be the first time VAT, which is applied to the sale of goods and services and not income, has been imposed in a GCC nation.

However, a government source said although the mechanics would be in place, it was “very unlikely” that VAT would be introduced this year because Federal approval and GCC co-operation, on several related issues, would be required.

VAT would be introduced to replace customs duties, which the UAE must phase out as part of the free trade agreements (FTAs) it is signing with a number of major trading partners, Mr Saleh said.

The government source, who declined to be identified, said a GCC-wide agreement on these FTAs is still some way off.

Mr Saleh told a seminar at the Arabian Travel Market in Dubai that VAT was likely to be set at a flat rate of between three and five per cent. It would be applied to all goods and services.