UAE: VAT will not exceed 5% in the Gulf

Image of UAE Minister of State for Financial Affairs Obaid Humaid Al Tayer [ DenmarkintheUAE/Facebook]

VAT of no more than five per cent will be applied from the beginning of 2018 to goods in the Gulf States, a senior Emirati official said today.

Obaid Humaid Al Tayer, UAE minister of state for financial affairs, said the tax will not exceed five per cent and will apply throughout the Gulf Cooperation Council (GCC) countries from the beginning of next year.

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Gulf states have suffered from a reduction in revenues as a result of the drop in oil prices, it is hoped that the introduction of VAT will be a step towards recouping lost revenue.

The tax will be imposed on all products and services, 100 items will however be exempt from the levy, no information has been given about what these will be.

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