As the Government is all set to implement Value Added Tax (VAT) law from January 2018 onwards in the United Arab Emirates (UAE), the Finance Ministry has stated that the tax rates on goods and service are not yet been finalysed.
Under Secretary Younis Haji Al Khoori said the ministry is still in the process of preparing the executive regulation of VAT, a news release read.
“UAE MoF is committed to working with the highest levels of transparency and disclosure and will publish all information related to VAT and taxable supplies once the executive regulation is issued in Official Gazette and published on the Ministry’s website,” the statement read.
As of now, the Government is planning to introduce a uniform VAT rate of 5 per cent on all goods including retail goods and big ticket items such as cars and white goods.
A full breakdown is due to be set out in the so-called executive regulations.
The statement from the ministry also quoted Mr Al Khoori as saying the Ministry’s website which is the only official source for any information related to VAT and excise tax said that there are several announcements being circulated online that are in fact about Saudi Arabia’s tax policy for VAT, rather than the UAE’s.
