Dubai Airports Services Will Not be Exempt from VAT

Updated on Wednesday 10th May 2017

Dubai Airports Services Will Not be Exempt from VAT Image
The financial authorities in Dubai have settled the VAT rate for particular goods and services which are going to be levied starting next year in January. This kind of tax will also be imposed to services offered in Dubai’s airport. If you want more details about the taxation system in the UAE, we invite you to solicit complete information from our accountants in Dubai. You can also receive information on the taxes imposed on your company or business in the UAE.


The VAT on airport services, a need tax in Dubai 

Although there have been long debates on why and how should the VAT be implemented in the GCC (Gulf Cooperation Council), the authorities in the UAE with the IMF (International Monetary Fund) have agreed on imposing a 5% tax rate on certain goods and services. It seems like this kind of financial measures is also necessary for the airport services in Dubai, Al Maktoum International Airport and Dubai International Airport. The VAT will be enforced on products and services in Dubai’s airports only for people who enter the UAE for the moment. The country deals for the first time with the VAT and the process of implementing such significant financial measure might take some time until is fully understood and applied, according to specialists in this matter. Businesspersons who want to set up companies in Dubai are recommended to solicit complete information about the taxes imposed from our Dubai accountants. Also, audit services in Dubai are mandatory for each enterprise with activities in the city.

Will there be any refunds for tourists in the UAE?

The financial authorities in Dubai have said that the airports are ready to adopt the new taxation system, which will soon include the VAT of 5% rate on goods and services. Ministry of Finance in Dubai and the representative of the tax consultants in the UAE had a debate on the possibility of refunding the VAT imposed on airport services for tourists who travel here. It was no clear answer in this matter, but certain policies are expected to be part of a refund scheme in the future.

Please feel free to contact our accounting firm in Dubai for extra details and information about the VAT rate for Dubai airport services.