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 States’ 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
UAE: Dubai to reintroduce 30% alcohol sales tax from January 2025
Dubai is reportedly planning to reintroduce a 30% alcohol sales tax effective 1 January 2025, reversing a policy that suspended the tax in 2023 to boost tourism. The announcement, communicated by major alcohol distributors MMI and African+
Read MoreUAE: Dubai publishes guidance for foreign bank tax
Dubai has released Administrative Decree No. 107 of 2024, detailing the application of a 20% annual tax on foreign banks' taxable income. The tax applies to all foreign banks operating in Dubai, including those in special development and free
Read MoreUAE to introduce Pillar Two minimum tax rules, tax incentives from January 2025
The UAE Ministry of Finance has announced that it has updated certain provisions of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses on 9 December 2024. These amendments include introduction of a Domestic Minimum
Read MoreBahrain: Council of Representatives approve tax treaty with UAE
The Bahrain Council of Representatives approved the ratification of the income tax treaty with the United Arab Emirates (UAE) on 3 December 2024. Bahrain's ratification of the two agreements on income taxes and the prevention of tax evasion and
Read MoreUAE: Corporate tax registration deadline for juridical persons with licences issued in December set for before end of 2024
The UAE Federal Tax Authority (FTA) has announced that all Resident Juridical Persons with licenses issued in December, regardless of the year of issuance, must submit their Corporate Tax registration applications by 31 December 2024. In a press
Read MoreUAE: Corporate tax returns, payable settlements due by end of December 2024
The Federal Tax Authority (FTA) called on businesses subject to Corporate Tax to file their returns and pay their dues for their respective tax periods within the stipulated legal timeframes. As part of its commitment to supporting and
Read More