UAE: VAT update

The UAE’s Ministry of Finance has recently published the following update regarding the implementation of a VAT system:

“Following the UAE Ministry of Finance’s role in developing and coordinating the countries fiscal policies, the Ministry confirms that the UAE has been conducting studies on the implementation of a VAT draft law, along with the other GCC countries. This is based on a previous agreement between the UAE and all GCC states to impose a VAT tax law simultaneously. The draft law is still pending and under negotiation due to the absence of a final agreement on the tax rate and a list of tax exemptions”.

“An immediate announcement will be made once a final agreement on imposing a VAT law is reached. Concerned sectors and entities will have around 18 months after imposing the law to implement and fulfil the requirements of their tax obligations”.

We will keep a close eye on developments and post updates once they become available.