- June 25, 2016
- Posted by: admin
- Category: VAT in UAE
The introduction of VAT (Value added tax) across the UAE has finally about to become a reality. After taking several years to gather momentum, UAE ministry has announced the introduction of VAT from January 1, 2018.
It is estimated that the UAE will generate VAT revenues, between Dh10 billion and Dh12 billion in the first year of its application. This amount is after exempting sectors such as healthcare and education in addition to several food items from the new tax.
VAT in UAE is an option for the government for the new source of income which will contribute in addition to the existing revenue. In another way it will help government to move towards its vision of coming out from the brand of oil dependent economy. Analysis suggests that it will help the country strengthen its economy by diversifying revenues away from oil and will allow to fund many public services. This is a sign of a maturing economy.