During the World Government Summit Ministry of Finance officials from the United Arab Emirates (UAE) announced they are to implement VAT by 1st January 2018. Also, the Finance Undersecretary has reiterated the Gulf Cooperation Council (GCC) Member Statesβ intention to apply VAT across the GCC by 1st January, 2018. Businesses should therefore begin adopting VAT and Excise Tax compliant policies to ensure a smooth transition by the starting date. A 5% VAT rate will be used on most goods and services, with certain areas potentially benefiting from special VAT treatment. Businesses should note that special VAT treatment may apply to healthcare, education, transport and technology. Also a new excise tax is planned to be introduced during this year in UAE, with specific goods considered injurious to the human health to be subject to the tax including soft drinks, energy drinks and tobacco products.
Related Posts
Korea (Rep.), UAE CEPA to take effect, tariff cuts phased over 10 years
Korea (Rep.) and the UAE will implement their Comprehensive Economic Partnership Agreement (CEPA) on 1 May 2026, following the completion of domestic approval procedures and bilateral consultations to expedite its entry into force. The CEPA,
Read MoreUAE: FTA updates corporate tax de-registration guidance
The UAE Federal Tax Authority (FTA) published the Taxpayer User Manual Corporate Tax De-Registration (Version 2.0.0.0) on 6 April 2026, providing detailed instructions for businesses seeking to de-register from Corporate Income Tax (CIT). A
Read MoreUAE announces tax procedures executive regulation amendments, effective April 2026
The UAE Ministry of Finance (MoF) has announced, on 1 April 2026, amendments to Cabinet Decision No. (74) of 2023 On the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures, pursuant to the amendments introduced under
Read MoreUAE offers 50% non-refundable credit in first phase of R&D tax incentives programme
The UAE has launched Phase 1 of its Research and Development (R&D) Tax Incentives Programme, aimed at strengthening the countryβs innovation ecosystem and supporting sustainable economic growth. Under the initial phase, businesses can claim
Read MoreUAE: FTA clarifies excise tax treatment of natural shortages in designated zones
The UAE Federal Tax Authority (FTA) has issued Excise Tax Public Clarification EXTP014, updating and replacing EXTP011, to clarify the treatment of Natural Shortage of excise goods within Designated Zones (DZs). The clarification defines
Read MoreUAE: MoF issues electronic invoicing guidelines
The UAE Ministry of Finance (MoF) has issued the Electronic Invoicing Guidelines (v1.0) on 23 February 2026, detailing the scope, operational framework, and phased rollout of mandatory e-invoicing. The system follows a Peppol five-corner model
Read More