VAT & NEW FEDERAL LAW (2) 2015
The Value Added Tax (VAT) is a consumption tax levied on the sale of goods and services. It was introduced in the UAE on January 1, 2018, as part of the country’s efforts to diversify its revenue sources and reduce reliance on oil income. The VAT rate in the UAE is currently set at 5%.
The Federal Law No. (2) of 2015 on Commercial Companies, as amended by Federal Decree-Law No. 26 of 2020, governs the formation and operation of companies in the UAE. It sets out the legal framework for various types of companies, including requirements for shareholders, directors, and corporate governance.
Both VAT and the Federal Law No. (2) of 2015 are important aspects of doing business in the UAE, and businesses operating in the country need to comply with these regulations to ensure legal and financial compliance.
About the Law
Federal Law No.2 of 2015 on Commercial Companies in the United Arab Emirates has mentioned with respect to below mentioned articles the Business accounts and Business Financial audit are mandatory, the word audit has been mentioned 148 times in the new Commercial Companies Law No.2 of 2015. Please find the references below for the commercial companies regarding Business Accounts and Business Financial Audit.