Team shortlist28 Aug 2017 AT 10:07 AM

UAE property, education and healthcare will not be affected by VAT

There's a new website to answer all your VAT questions
Team shortlist28 Aug 2017 AT 10:07 AM
UAE property, education and healthcare will not be affected by VAT
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According to new information released by UAE’s Ministry of Finance earlier this week, education, healthcare and property will be subject to zero percent Value Added Tax (VAT).

The cost of preschool and school, as well as government owned or government funded higher education facilities will be unaffected by the introduction of VAT.

All goods exported out of the GCC will be zero rated, while investments in gold, silver and metals with 99 percent purity will also be subject to a zero VAT rate.

There’s also good news for residential property hunters as both rental and sales will be generally exempted from VAT.

With regards to transport, it seems that the price wont be going up anytime soon. All local passenger transport such as taxis and metro services will be exempt, while international flights from the UAE as well as international air passenger transfers through the UAE will be zero rated.

In an attempt to help all UAE businesses adapt to the new law that will come into effect on January 1, 2018, the UAE’s Federal Tax Authority (FTA) has launched a new website, www.tax.gov.ae.

Aside from assistance and guidance, the website will provide online training sessions that will be conducted by the FTA for businesses across the UAE. Business owners will also be able to pre-register their companies for excise tax and VAT on the website from the middle of September.

If you're looking to join the UAE's work force, it is important to note that while all businesses with annual revenues of over AED375,000 will be obliged to register for the GCC VAT system, there will be no income tax on salaries. 

The news of the 5 percent VAT was confirmed earlier this year by the Under Secretary of the UAE Ministry of Finance, Younis Al Khouri, who stated that from January 1, 2018, all GCC countries will be enforcing a 5 percent VAT on various goods and services across the GCC.

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