Why is the VAT being introduced in the UAE ?

  • Overview

VAT has only recently been introduced in the UAE after several years of a tax-free regime in the UAE. The UAE Government has provided some of the best amenities and services to its residents. Services such as public schools, parks, healthcare, infrastructure etc. are of top quality and paid directly from Government budgets.


The newly introduced VAT will provide the UAE government with a new and additional source of income, thereby allowing for better cashflow management. This will enable the continued provision of high quality services. It will also help the UAE government in reducing dependence on oil and other fossil fuels as a source of revenue. VAT is the first step towards a structured and taxation-based society within the UAE.


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