UAE Sets Out Scope Of New 5pc VAT

The United Arab Emirates Federal Tax Authority on December 5 released tabulated data on what goods and services will be subject to value-added tax at the standard rate, zero rate, or exempt from January 1, 2018.

The guidance reveals which sectors will be assigned zero-rated tax, such as education, healthcare, oil and gas, transportation, and real estate.

Selected supplies in sectors such as transportation, real estate, and financial services will be completely exempt from VAT, whereas certain government activities will be outside the scope of the tax system. According to the guidance, these include activities that are solely carried out by the Government with no competition with the private sector, with a list of such government entities to be released shortly, and activities carried out by non-profit organizations.

The guidance, in English, is on the FTA’s website, titled “Federal Tax Authority Announces Supplies Subject to VAT, Identifies Exempt Supplies,” found in press statements under media center. It has also recently released guidance to support firms and agents to register for value-added tax.

Source:https://www.tax-news.com/news/UAE_Sets_Out_Scope_Of_New_5pc_VAT____75985.html

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