VAT and Excise Taxes to be Imposed on Non-Essential Goods in UAE

Updated on Sunday 23rd April 2017

VAT and Excise Taxes to be Imposed on Non-Essential Goods in UAE Image
After numerous debates and discussions with the IMF (International Monetary Fund) and other important financial organizations in the world, it seems like the UAE agreed on the VAT, a tax which will be imposed starting with January 2018. It is true, the tax rate is set at 5%, quite low compared to other countries, and the best part is that not all goods and services will be taxed. Our accountants in Dubai are able to explain you the taxation system in the UAE and can also provide you with complete assistance regarding the financial matters for your company.
 

What non-essential goods will be levied in Dubai?


In the category of non-essential goods enters the beverages, jewelry, tobacco, and particular luxury and premium cars. The authorities in Dubai have agreed on the excise taxes which will also be imposed on non-essential goods and will be settled at 50% to 100% rate from the goods' sale price. Experts in economy say that such taxes were expected in the UAE and consider that the collected money will be reinvested in the country, in infrastructure, health, education, green energy and many other important sectors.

Energy drinks, luxury cars, and tobacco will be the first non-essential goods where the excise taxes will be applied starting this year. If you want to know more details about the new taxation system in the country and about the free trade zones in the UAE, you may solicit help from our Dubai accountants. Companies in Dubai need financial consultancy, bookkeeping and also audit services, matters where you can receive complete help from our advisors.
 

The new taxation system in the UAE will be settled by the end on 2017


The implementation of VAT in the UAE is still in discussions and further explanations are expected to be detailed as soon as the financial authorities will agree on all aspects. The basic essential goods will be exempt from taxation for the moment, according to authorities who are now focused on additional taxes on tobacco products, beverages, gold jewelry, and luxury cars. 

We kindly invite you to contact our accounting firm in Dubai for complete information about the taxes which are going to be imposed in 2018.