The Government of the United Arab Emirates is completing the procedure for the introduction of sales tax in the country or in other words, VAT.
According to the newspaper "Al-Ittihad», it will affect only luxury goods segment, namely alcohol and tobacco products. The daily goods products will be exempt from tax.
The first draft of the law will be implemented in the third quarter of 2015. The IMF proposes to make the initial tax rate in the amount of 5%, but there is no final decision yet, as well as information when and how the UAE government plans to introduce a tax. But it is known that the company will receive a 2-year transitional period to adjust to the new tax rules since their implementation.
Earlier, the GCC Council discussed the implementation of VAT in all its countries, however, the United Arab Emirates will become the first country in which VAT will be imposed.
Download file
