UAE is federation of Abu Dhabi, Dubai, Ajman, Fujairah, Ras al Khaimah, Sharjah and Umm Al Quawain, these emirates
united nation is UAE.
In UAE the government implemented Value Added Tax system from 1st of January, 2018 at a standard rate of 5%
The countries major income was from the Oil industries, but now government is
seeking more diversity in income like IT, Tourism etc
So we can say VAT is also a mile stone to the added revenue to the government
to archive new level of progress in the economy as well as the growth of the entire community
What are the VAT Registration Criteria
AS per the VAT rues in UAE A business must register for VAT if their taxable supplies/services and imports exceed the threshold of AED 375,00.
and a company/ business can register for VAT volunteerly if their net taxable income is
more or equal to AED 187500
What are the Zero rated Items of VAT
The following items/supplies have zero (0%) rated VAT
1. Business/Export of Services and goods outside the GCC
2. International transportation and related supplies
3. Supplies of specified sea, air and land means of transportation like aircraft and ships
4. Newly constructed residential properties
5. Precious metals like Gold, Silver etc with 99% purity
6. Education services/goods
7. Certain health care services/goods
Exemptions of VAT
The following supplies and categories are exempted for VAT
The supply of some financial services
Residential properties
Bareland
Local passenger transport