27 July 2016
The United Arab Emirates (UAE) will implement VAT at a rate of 5% from 1 January 2018. The VAT registration threshold for all businesses has been confirmed at AED 3,750m.
This will be levied on most goods and services however there will be exemptions on essential items such as foodstuffs and health & social care services.
The UAE is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries have agreed to implement a harmonized VAT regime by 2018. The GCC countries consist of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.