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Understanding VAT in the UAE
Understanding VAT in the UAE The UAE introduced Value Added Tax (VAT) on January 1, 2018, as part of its efforts to diversify the economy and reduce dependence on oil revenues. The standard VAT rate is 5%, and it applies to most goods and services. Businesses with an annual turnover exceeding AED 375,000 are required to register for VAT. Key Aspects of UAE VAT: VAT-Registered Businesses: Businesses must charge VAT on taxable supplies and can claim VAT on eligible purchases. Exempt and Zero-Rated Goods/Services: Some sectors, like education, healthcare, and real estate, have special VAT treatments. VAT Returns a...


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