The World Expo is coming this year to the UAE. The already buzzing sound of Expo 2020 Dubai chants are creating a wave of excitement for the people as well as the businesses that are soon to present their groundbreaking ideas and technological innovation in this one-of-a-kind business expo that provides an opportunity for international exposure to both established as well as startup businesses.
Also, this year’s theme ‘Connecting minds, creating the future’ with 3 distinct areas of focus or districts i.e. sustainability, mobility and opportunity, sound as promising for generating revenue currently as it does for the better future of the world.
But what does this grand Expo 2020 Dubai mean for the UAE and its economy?
In recent years, the UAE has been collecting VAT on various goods and services. As Expo 2020 Dubai will be held in the mainland UAE, the tourists as well as the participants are required to pay VAT if their taxables or imports in UAE exceed or are likely to exceed AED 375,000. Participants of Expo 2020 would hence be required to strictly follow FTA guidelines issued regarding VAT registration and return filing.
Participants will be mainly subjected to the VAT due to the expenditure on exhibition space set up and management. Special decors and installations of state-of-the-art technology is likely to create an expense record with heavily taxed equipment even though the VAT in the UAE is only 5%. This would be a great opportunity for the Expo 2020 Dubai for generating revenue that would in return help the activities and operations of the event run smoothly and up to people’s expectations.
Participants are also however allowed to reclaim the VAT refund in case their input tax exceeds their output tax. Though the criteria issued by the FTA must be strictly met and the guidelines closely followed along with proper documentation (such as Certificate of Entitlement) in order to file a VAT reclaim application.
Not only participants but it is also expected that over the course of the 6 months of Expo 2020 (Oct-Mar) a population of 25 million will be visiting Dubai, the tourism industry will only sky rocket along with 11.4 billion AED of profit just for the restaurant and hotel businesses. The VAT paid by tourists on their taxable purchases during their stay would only boost these businesses even more. This would in turn also allow the restaurant and hotel businesses to bring exceptional service for their clients attending the Expo 2020.
Expo 2020 has also been able to create hundreds of new employment opportunities that would help further in enhancing the quality of life of the UAE residents. However, the UAE’s expectations from the Expo 2020 are long-term. The VAT collected during this time from the participants, tourists and local residents along with the investments in the future-shaping businesses are estimated to boost the economic activity by 122.6 billion AED during the time period of 2013-2031, impacting the GDP as well.
If managed properly, the Expo 2020 Dubai can leave its legacy behind as being the most successful World Expo which shaped the future through the innovation of businesses and bolstered the present by supporting the economy.
How can ACCBOOKS support you in this time of fiesta?
ACCBOOKS Accounting & Bookkeeping is a UAE based accounting and bookkeeping firm in Dubai.
ACCBOOKS’ team of accounting and VAT experts can aid you in various arenas:
- By providing support in filling out VAT registration application, filing VAT return, and refund application (if applicable)
- By maintaining comprehensive accounting and bookkeeping record
- By keeping you up-to-date regarding any change in policy or guidelines issued by FTA
- By extending to you their best advisory and consultancy services
ACCBOOKS brings you assistance in the intricate matters of tax and accounting while you live the luxurious experience of Expo 2020 Dubai and enjoy this remarkable event.
