Introduction of Value Added Tax (VAT) in the UAE


Introduction of Value Added Tax (VAT) in the UAE

VAT in the GCC and the impact areas in the implementation cycle

VAT in the UAE: where are we today?

The UAE is introducing VAT from 1 January 2018 onwards, and has now issued the Federal VAT Law (published 27 August 2017) establishing the domestic rules applying for VAT in the UAE. This adds to the Unified VAT Agreement for the Gulf Cooperation Council (GCC) signed by each of the Member States.

VAT Executive Regulations are in the process of being approved and it is hoped they will be enacted and made public in the coming months.

Impact of VAT on businesses in the UAE

This document will answer the below listed questions regarding the introduction of the indirect tax in the UAE.

  • 5%, VAT exempt or zero-rate transactions?
  • VAT recovery right
  • Overview of expected special rules (free zones, bad debt relief, real estate, VAT group, Insurance, finance and Islamic Finance and import of goods)
  • VAT refund
  • Prepare soon: are you compliant?
  • Transitional periods and rules
  • Help needed?
VAT in the UAE