VAT in UAE
VAT or Value Added Tax is an indirect tax that is to be implemented from 1st January 2018 in UAE.. Announced through the Federal Decree – Law no. (8) of 2017 by the Ministry of Finance of UAE, the new VAT regulations state the implementation of a tax on goods and services for businesses and end consumers alike, with exemptions on a few goods and services. It is to be imposed on the supply and import of goods and services at each stage of distribution as well as production.The Executive Regulation accompanying the Federal Decree – Law no. (8) states the VAT law in detail and is now open for all to view online.
There are two types of VAT registration in the UAE:
- Mandatory Registration
- Voluntary Registration.