United Arab Emirates VAT 2018
- May 8, 2016 | Richard Asquith
As the UAE prepares to launch VAT, the Ministry of Finance has issued further guidelines on its structure.
The main proposals (subject to further change) are below:
- Potential launch date 1 January 2017
- 5% VAT rate
- VAT will be levied on most goods and services
- Exemptions for some foodstuffs, health and social care services
- The VAT registration threshold for businesses has yet to be set
- Reporting will be online
- Immediate cash repayments will be available for VAT credits
- Tourists will be subject to the new VAT on their local purchases
- Businesses sending representatives to the UAE will be able to reclaim any VAT suffered
- Government bodies and services will be exempted
The UAE is part of the six-country Gulf Cooperation Council. All the countries have agreed to implement a harmonized VAT regime in 2018. The GCC countries are: Qatar, Saudi Arabia
VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax
Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara