The United Arab Emirates (U.A.E.) Minister of State for Financial Affairs has announced that the U.A.E. will implement a value added tax (VAT) at the rate of 5% from 1 January 2018. VAT will apply for must supplies in the country, with an exemption provided for certain food items, education and healthcare.
The implementation of VAT in the U.A.E. is part of a Gulf Cooperation Council (GCC) framework for the implementation of VAT in all GCC Member States in 2018. VAT is seen as needed due to decreased revenues resulting from falling oil prices. Under the framework, each country is allowed some flexibility on the timing of implementation, but all must implement and apply a VAT system by 1 January 2019 at the latest. The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the U.A.E.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.