- Domestic Supplies: Most goods and services in the UAE are subject to a standard 5% VAT, while certain categories are zero-rated (e.g., exports, international transport, specific healthcare/education) or exempt (e.g., residential property after first sale, bare land, local passenger transport).
- Imports: A 5% VAT applies to imported goods and services, typically accounted for via the Reverse Charge Mechanism (RCM) for VAT-registered businesses, avoiding cash outflow. Non-registered entities pay VAT upfront at customs, which becomes a non-recoverable cost.
- Compliance Essentials: VAT on imports is calculated on the CIF value plus duties, with exemptions for personal effects, returned goods, and suspensions under customs arrangements. Proper documentation is critical for input tax recovery.
Source Dr. Murad Qabajeh
Latest Posts in "United Arab Emirates"
- UAE Tax Agent Guide: Hiring, Roles, and EmaraTax Linking
- UAE Sets Phased Deadlines for Mandatory Electronic Invoicing
- UAE October 2026 E-Invoicing Guidelines: Key Updates
- UAE Updates Electronic Invoicing Guidelines with New Identification and Cross-Border Rules
- United Arab Emirates Sets E-Invoicing Deadlines for Businesses by Revenue Tier
