Team shortlist16 Mar 2017 AT 10:26 AM

5 things to know about VAT in the UAE

Yep, it’s actually happening
Team shortlist16 Mar 2017 AT 10:26 AM
5 things to know about VAT in the UAE

If you think that the cost of living in the UAE is expensive, you’re not gonna like what you're going to read next… VAT is coming to the UAE and you are probably going to have to pay for it out of your own pocket.

To help you plan for the future and budget we have compiled a list of the five things that you need to know about VAT in the UAE…

1. Younis Al Khouri the Under Secretary of the UAE Ministry of Finance confirmed that all six GCC countries, including the UAE, are set to introduce a 5 per cent value added tax (VAT) from January 1 2018.

2. The UAE is expected to pass a waiver on around 100 goods and services, such as food and healthcare. The bad news? A new report by BMI Research indicates that companies subjected to the 5 per cent tax will simply hike up their prices by this amount, making consumers pay more.

3. Leisure activities and items such as cars, electronics, jewellery, fizzy drinks and tobacco will fall under the taxed category.

4. While businesses with annual revenues of over Dh3.75 million will be obliged to be registered for the GCC VAT system, there will be no income tax on salaries.

5. VAT is expected to bring in a whopping AED12 billion in its first year. 

Comments