<b>Financial Governance and Compliance Perspective: </b> <b> VAT Implementation in the UAE </b>

This study discusses the Nigerian experience in the adoption of Value-added tax (VAT) especially as it relates to implementing rules for financial governance and compliance in the UAE. This assesses VAT as an avenue to introduce revenue sources in an economy, which has hitherto do not recognize taxes, and its effect on SMEs. This study analyses VAT structures, regulations, and compliance issues as well as funds management, based on a UAE SME survey using a quantitative analysis approach. The following are findings: Understanding of VAT and effective training, technological advancement, and functional financial management are positively related. Several factors are underscored as factors hindering compliance; these are for instance restrictions in the availability of resources, and the intricate nature of laws. Institutional approaches including a higher technological system, legal requirements for conformity training, and policy changes are used to increase VAT implementation and good governance. The study further alerts policymakers and other stakeholders on the role of VAT for economic sustainability and provides practical recommendations for stakeholders such as the Ministry of Finance, policymakers, businesses, and industry associations. Some of the research opportunities for future studies are as follows: Sector wise compliance issues, new technologies, and long-term outcomes of VAT governance.