It’s Official: VAT to be introduced in UAE in 2018
A matter that has been discussed, debated and now, is finally confirmed by a senior official at the UAE’s Ministry of Finance (MoF) that Value-Added Tax (VAT) will be introduced across the UAE and the GCC in 2018.
Stating that the GCC countries have agreed to unify their tax policies before the introduction of the VAT.
The UAE stands to earn estimated VAT revenues of between Dh10 billion and Dh12 billion in the first year of its application. This amount is after exempting sectors such as healthcare and education in addition to several food items.
A VAT rate of between 3 and 5 per cent for the various sectors will be introduced, with the exception of healthcare, education and 94 food items on which there will be no VAT.
The UAE, as reported, needed two years for the adoption of the new Tax law, and therefore seemingly VAT could be implemented in 2018.