Known as VAT, it is a tax levied on goods and services as they are purchased. Consumers will ultimately be responsible for paying it. Using the government’s assistance, the organizations are responsible for collecting and reporting the tax. In the UAE, a taxable supply is a distribution of goods or services made by a company that is taxed at a rate of either 5% or 0%. Similarly, imports are considered if the supply is taxable in the UAE if it was made within the country. The purpose of this blog is to provide facts about VAT filing in Dubai.
A new form of indirect tax called Value Added Tax (VAT) was introduced by the United Arab Emirates on 1 January 2018. It has a rate of five percent on most goods and services. The GCC countries’ VAT policy increases the economic scope of their countries by integrating an additional revenue source in the wake of the oil crisis. With a shift to a more sustainable consumption system, this new source of income will be used to provide high-quality public services. Furthermore, it aims to reduce the government’s dependence on oil and other hydrocarbons as a source of revenue. Read here to learn more about the need for VAT filing in Dubai.