With the recent announcement of the Tax Procedure Law by the President of the UAE, the country is all set to welcome the new policies that will be forming the part of day to day activities of many businesses.
The Tax Procedure Law has paved the way for the implementation of the much awaited VAT in the UAE. VAT is an indirect tax that is charged on the supplies of goods and services that are bought and sold. The introduction of VAT aims to strengthen the indirect tax structure of the UAE.
VAT will come into force on 1st January 2018 and charged at the rate of 5%. VAT will be chargeable on a vast variety of goods and services in the country. However, there are certain goods and services which are exempt from VAT.