31 August 2017
The United Arab Emirates (UAE) has now published its Value Added Tax (VAT) law confirming that it will be implementing VAT at a rate of 5% from 1 January 2018.
The VAT registration threshold for all businesses has also been confirmed at Dh 375,000 (Approx. US$ 100,000).
The new tax 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 harmonised VAT regime by 2018. The GCC countries consist of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.
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