Gold, Property and More to be Free of VAT in UAE
Gold, Property and More to be Free of VAT in UAE
- The details of the law for introducing VAT in UAE was released by President Sheikh Khalifa bin Zayed Al Nahyan on 27th August
- The law states that goods and services are subject to value added tax at a standard rate of 5%, and outlines a series of exclusions
- The law exempts the following items from VAT – school education, basic healthcare, gold, export goods, residential property and public transport services (more to be decided in future)
- More details will be forthcoming in Executive Regulations that will set out which financial services and healthcare services will be exempt from VAT
- 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% will be introduced in UAE from 1st January, 2018
- VAT will be implemented across all GCC countries by 1st January, 2019
- VAT is estimated to bring in AED 12 billion in 2018 and AED 20 billion in 2019
- UAE plans to introduce excise tariffs at a rate of 100% on tobacco and energy drinks and 50% on sugary drinks by October 2017
