70% of VAT Revenue to be Used for UAE Government Projects
- 70% of all revenue collected from VAT in UAE will be pumped back into local services, Sheikh Mohammed bin Rashid said
- The Vice President, Prime Minister and Ruler of Dubai chaired a UAE Cabinet meeting in Abu Dhabi, where the announcement was made
- The Ministry of Economy and Federal Tax Authority launched a programme with the aim of protecting consumers’ rights and preventing profiteering
- According to the FTA, revenue from VAT will contribute towards public services ordinarily paid for from government budgets
- Value Added Tax (VAT) is a general consumption tax that is added to products and services at every stage of its production, which differs in value from country to country
- VAT of 5% was introduced on goods and services across UAE from 1st January 2018
- VAT is designed to tax only the value added by a business on top of the services and goods it can purchase from the market
- Water, electricity and other commodities like groceries, property and health insurance premium have been taxed at 5% in UAE from 1st January 2018
- VAT will be implemented across all GCC countries by 1st January 2019
