VAT & UAE
VAT was introduced across the UAE on 1st January 2018 at a standard rate of 5% and this government move was in tandem with its vision of reducing dependence on income derived from oil and other hydrocarbons. Towards this the government issued Federal Decree-Law No. (8) of 2017 and Executive regulation to implement the Decree Law vide Cabinet Decision No. 52 of 2017. The Federal Tax Authority (FTA) was established under Federal Law by Decree No. 13 of 2016 to take charge of managing and collecting federal taxes and related fines, as well as distributing tax-generated revenues and applying the tax-related procedures in the UAE.
