ABOUT VAT IN UAE
The value added tax laws came into effect in the United Arab Emirates and the Kingdom of Saudi Arabia on 1 January 2018. In both countries, the respective VAT law outlines the key principles on the application of VAT. The supporting ‘Executive Regulations’ provide clarification on how VAT is rolled out and the impact it has on both consumers and businesses.
The introduction of Value Added Tax (VAT) in UAE, a Tax-free jurisdiction, brings with it a lot of opportunities and challenges. Value Added Tax will be collected at the rate of 5 % on the goods and services, at each step of the supply chain.