Water and Electricity will be taxed at 5% in UAE from 1st January 2018
Water and Electricity will be taxed at 5% in UAE from 1st January 2018
- Both water and electricity will be taxed at 5% from 1st January, 2018, according to a set of draft executive regulations published on the Federal Tax Authority’s website
- Water and electricity will be treated as supplied goods, and therefore subject to a 5% VAT in UAE
- The Ministry of Finance will be releasing approved draft of the executive regulations by the third week of November 2017, which clarify VAT and exemptions in UAE
- The chief economist of the Abu Dhabi Commercial Bank estimates that VAT could add about 2.7%-3.7% points to headline inflation in the first year post introduction
- 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
- The impact of the introduction of VAT on annual inflation in UAE is expected to be only a fraction of the rate of 5%, according to the International Monetary Fund
- With the introduction of VAT, the cost of property and health insurance premiums may go up by 5% in the UAE, the largest insurance market in the GCC
Water and electricity will be taxed at 5% in UAE from 1st January 2018
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