The Finance Ministry (MoF) announced the Executive Regulation for the Federal Decree-Law No. (8) of 2017 regarding Value Added Tax (VAT) at a Cabinet meeting on November 7, 2017, directed by the Vice President and Prime Minister of the UAE, Sheikh Mohammed bin Rashid Al Maktoum. This Executive Regulation will be effective on January 1, 2018. The draft text of the Executive Regulation for Federal Decree-Law No. (8) of 2017 related to VAT will be released next week on the Ministry of Finance’s website www.mof.gov.ae and the Federal Tax Authority’s website www.tax.gov.ae simultaneously.
According to Regulation, a 5% VAT charged on the import and supply of goods and services at each stage of production and distribution, including what is a deemed supply, with the exception of particular supplies subject to the 0% rate and what is exempted as specified in the Decree-Law.
