Exemptions from VAT Starting 2018

Updated on Sunday 16th July 2017

Exemptions from VAT Starting 2018 Image
The VAT in the UAE will be imposed in January 2018 with a few exemptions. The residential real estate is already on the list of products, goods, assets and services for which the value added tax won’t be applied. If you are interested in the real estate sector and the taxes that come with a certain purchase, you may solicit information in this matter from our accountants in Dubai.
 

Which goods and services are exempt from VAT?


The VAT will be imposed for the first time in the UAE on certain goods and services and will be settled at 5%. After numerous debates, the financial authorities in the UAE have decided to add the VAT only on certain goods and services, while others have been exempt from such taxation, such as:

•    residential real estate;
•    undeveloped land;
•    transportation;
•    export of goods;
•    clothes;
•    basic food;
•    international transport;
•    healthcare services;
•    supply of education services.

For comprehensive details about the VAT which is going to be implemented starting next year, we recommend you to contact our Dubai accountants. Our team can also provide you with audits in Dubai, for any company, small or large.
 

VAT in the UAE’s tourism


Although many countries worldwide offer tax refunds to tourists, it seems that this rule won’t apply in the UAE once the VAT will be implemented. It is good to know that there will be low taxes applicable for goods and services for tourists in the UAE. It is known the fact that the tourism is a major source of income in the country, but even so, the financial authorities have decided to enforce the VAT, but with low rates. Before the VAT will be imposed in the UAE, the list of exemptions is open, and there are certain details to clarify, especially regarding the local and foreign companies with numerous activities in the Emirates.

For a better understanding of the VAT which will be implemented in January 2018 in the UAE, we recommend you to contact our accounting firm in Dubai. You can also ask about the financial services in Dubai for your company.

There are no comments

Please note that URLs are not allowed in the message.

*
*