There are no plans to delay VAT for businesses or banks in the UAE and no company will be exempted or will be given an extension for applying, the Minister of State for Financial Affairs announced on Tuesday.

“The date is set for levying VAT from January 1, 2018, and the government is ready for VAT,” minister Obaid Humaid Al Tayer said during a session of the Federal National Council (FNC), held in its headquarters. During the session chaired by FNC Speaker Dr Amal Al Qubaisi, council members raised concerns over the readiness of businesses for VAT, and the impact of VAT on the overall national economy to the minister.

“The imposition of value added tax is a historic step forward,” said the minister, adding that it is a step forward towards achieving “financial stability”.

However, a statement by the Chairman of UAE Banks Federation, Abdul Aziz Abdulla Al Ghurair, revealed the concerns that banks in the UAE had over the VAT, highlighting that banks are not ready and require a six-month extension.

“The government does not like to postpone anything, so it’s impossible to exempt anyone from the tax. There will not be any favours given to anyone,” said the minister.

This is an excerpt from a Khaleej Times article and you can read the complete article here.