About VAT in UAE

GCC countries has decided to implement Value Added Tax in the entire region through a treaty signed by all member countries. UAE has already implemented the VAT laws and regulations with effect from January 1, 2018, along with Kingdom of Saudi Arabia.

The introduction of Value Added Tax (VAT) in UAE, a traditionally TAX-free jurisdiction, brings with it a lot of opportunities and an equal amount of challenges. Our team of thriving VAT specialists are well equipped to help your business overcome expected roadblocks such as

  • Lack of familiarity with VAT rules & regulations
  • Structure and Compliance issues
  • Lack of resources (Availability of experts and competent staff)
  • Lack of a robust book keeping system

    • Rate of VAT

      The types of rates applicable are:

    • Standard rate

      • The businesses registered under UAE VAT will be levied 5 percent tax.

    • Zero rate

      Zero-rated Industries:

    • Exports of goods and services outside the UAE
    • International transportation, and related supplies
    • Supplies of certain sea, air and land means of transportation (such as aircrafts and ships)
    • Certain investment grade precious metals (e.g. gold, silver, of 99% purity)
    • Newly constructed residential properties, that are supplied for the first time within 3 years of their construction
    • Supply of certain education services
    • Supply of certain Healthcare services

      Areas exempted from VAT

    • Supply of certain financial services
    • Residential properties – sale and lease
    • Bare land – sale and lease
    • Local passenger transport