Tuesday, 21 November 2017
New VAT rules for United Arab Emirates
New VAT rules will be introduced across the United Arab Emirates from 1 January 2018.
All Gulf Cooperation Countries (GCC) have agreed that it will be mandatory for companies with revenue of over US$100,000 to be VAT registered with the Federal Tax Authority.
Registration will be voluntary for companies with turnover above US$50,000, but with thresholds that low it is thought the majority of companies in the UAE will pay VAT.
With the go-live date of VAT in the region just two months away, those exporting to GCC countries using the DDP Incoterm should be aware of the five per cent charge being introduced.
The charge of VAT on imports will work in a similar way as it does in the EU at present, with the VAT being paid before goods can be released. Where appropriate, the importer will be able to reclaim the VAT paid.
For more information visit the UAE Ministry of Finance website.Back