General Questions & Answers
1.1 When was VAT implemented in UAE and what are the rates?
The VAT came into effect across the UAE on 01 January 2018. A standard rate of 5% is applicable as VAT added to the sale price.
1.2 How will the government collect VAT?
It is the accountability of the companies to document thoroughly their business revenue and expenses along with associated VAT charges. A prevailing VAT rate is applied by registered businesses and traders to all of their customers to bear the VAT costs of goods and services bought from suppliers. The difference between these figures can be reclaimed or paid to the government.
1.3 Will VAT be applicable to all products and services?
The VAT is a consumption-based tax; therefore, it has to be applied to most of the transactions of goods and services except those that are exempted by the law.