UAE 5% VAT Jan 2018
The United Arab Emirates confirms that it will introduce VAT from the 1 January 2018 despite legislation still not being published.
The threshold for registrations will be $100,000 sales per annum. The standard VAT rate of 5% will apply to most goods and services, including financial services. There will be exemption for: healthcare; water; transport; education; and some technologies and renewable energies.
The UAE, along with the other five Gulf Co-Operation Council states, is introducing VAT to diversify its revenues from unreliable oil duties. The UAE is expected to earn over $3bn per annum from the implementation of VAT.
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