Dubai- Mubasher: Unreadiness of a large number of small and medium-sized enterprises (SMEs) poses a challenge to put value-added tax (VAT) into effect early 2018, president and CEO of Dubai Chamber of Commerce and Industry (DCCI) Hamad Buamim told Emarat Al Youm newspaper.

He said that the accounting and auditing systems are unready to impose VAT on SMEs.

Buamim affirmed that VAT implementation has positive effects on the local economy and will not weigh on Dubai’s competitiveness as an attractive investment hub.

The VAT will be applied in UAE by January 2018, with expected revenues of around AED 10 billion to AED 12 billion in the first year.