UAE VAT Value Added Tax
Between 2012 and 2014, the UAE economy showed a growth rate of 5.4%, making it one of the highest growing economies in the Middle East and North Africa region. Since then, the UAE has continued to expand at a rate of around 3% per year. The introduction of Value Added Tax (VAT), effective 1 January 2018, is expected to positively impact consumer demand over the short and medium term. The VAT in Dubai and the UAE is a simple tax that can be paid to clients or invoiced separately. The standard VAT rate is 5%. However, there are also reduced rates and exemptions for certain products and services. Some of these reduced rates are zero, 2%, and 5% for purchases such as food, education services, books and packaging materials. UAE has managed to keep the VAT at the lowest levels possible in international standards.