Businesses within UAE will be accountable to document their costs,income and VAT charges and if they meet the minimum annual turnover they will be required to register for VAT. All business are required to maintain their financial record incase the ministry requires it. Businesses whose annual revenue is higher than 375,0 are required to register for VAT. VAT is not the same as sales tax, the reason is because when implementing VAT each supply chain within the business has to apply, collect and report the tax. Businesses will undertake changes in the operations, human resources and technology to ensure that they have followed the required by the government VAT law will create additional demand for skills in business organizations, although some businesses might prefer to delegate the new responsibilities to the existing employees in the company. It is expected that businesses hire VAT experts who are capable of producing tax return record at the time of submission. In case the failure in producing the report of errors the businesses will be exposed to heavy penalties.  VAT- registered business are required to maintain business record as it will help the government to check that they are on the right track. Moreover VAT registered businesses will charge VAT on goods and services they supply and will benefit as they can reclaim any VAT they paid for business related services and goods. They are required to report to the government on regular basis all the amount of VAT they have charged and paid. It is important to note the businesses will pay the government the difference if they have charged more VAT than they paid and they can reclaim the difference if they paid more VAT than they have charged.VAT has a major limitation, that is it forces MNEs to include VAT on all sales. Therefore the product offered by the company will appear more expensive to the customers. The issue here is that those businesses who mainly sell or wholly sell to customers are more likely to be affected. Moreover as explain, VAT requires submission of VAT return quarterly, that means that they need to maintain VAT invoices which all is an extra costs with the company’s accountant. VAT might force companies to move assets to non tax country, some international companies will consider repatriating because in this way they can avoid double taxation. Therefore companies have to re-evaluate their investment decisions to calculate what their new returns on investments are. It also very important to note that the human resource have a vital role during the implementation of VAT, that include employees have the appropriate knowledge and skills through regular training and recruitment.  According to Fitch, the VAT is more likely to affect the profitability of the company because customers demand will weaken as result of the reduction of their available income.  Businesses in UAE should plan and set up an internal control framework for monitoring, comprehend changes required to local frameworks, for example, Oracle and SAP and any different exchange frameworks and evaluate the utilization of VAT assurance (tax) engines, says Rob Hucknall, ME Finance Consulting Partner, PricewaterhouseCoopers. Organizations utilize Enterprise resource planning (ERP) programming to oversee and incorporate center business forms.Some goods and services may be assigned a zero rate said Bashar Al Natoor, Global Head of Islamic Finance Fitch Ratings, that means the business will be charging VAT at 0 % on all sales and that VAT will be reclaimed on purchases. If a company is selling goods and services that are VAT exempt then they will have to bear the cost themselves as they wont be able to reclaim the VAT on purchases. Renegotiating Contracts With the implementation of VAT in UAE, MNEs will have to meet with their vendors, suppliers, other partners and customers to discuss the agreements made and rework to come to an agreement that is suitable for both parties.There are arrange of opportunities to enhance VAT cash flow and these generally involve deferring the payment of VAT due or improving the timing of recovery of VAT on costs, or both. Like, where your company imports an important value of goods there might be import VAT deferment schemes available for you to enhance the business enterprise cash flow. Considering the suitable management of accounts receivable and payable will enhance your cash flow. And there might be other considerations such as for example ensuring business promotion schemes maximize VAT cash flow savings. Cash flow planning is highly recommended across the different business departments. Like improved billing and collection systems and processes for collecting from your visitors and paying your suppliers can assist in minimizing any adverse cash flow impact of VAT. Value Added Tax in malaysia was implemented in April, 2015, there are few key lessons from businesses who started planning earlier, it enabled them to,  decide whether they should use their in house resources or outsource to a third party to handle the project. project  cash flow and capital expenditure. Businesses were also able to identity and address issues regarding the impact of VAT on their business, that in return enabled them to raise the issue to the VAT authority and they had a higher chance to receive a response. Solution to existing issues with the guidance of senior management, in addition to the identification of the skills and headcount necessary to deliver a successful project in timely manner.In the GCC, government’s wanted to implement VAT to ensure that the dependence on oil revenue is reduced and creating a secondary income stream. The revenue collected by the government will be used for the development of infrastructure, that includes developing roads, waste control, parks and other projects. VAT is a transparent way in which governments are going to increase revenue. The IMF estimates that GCC states GDP will boot by 1.5 percent as a result of the implementation of VAT. as mentioned this will help the GCC expand their economies while reducing the dependence on oil and ensuring public services are 

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