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
