The United Arab Emirates and Saudi Arabia will introduce value-added tax (VAT)
The UAE and Saudi Arabia will now be the first countries in the Gulf Cooperation Council (GCC) to introduce Value Added Tax (VAT) from January 2018.
The VAT rate will be set at 5%. Excise tax will be 100% for tobacco and energy drinks, while the rate will be set at 50% for soft drinks (excluding sparkling water).
All businesses meeting the minimum annual income (Dh375,000) are required to register with the VAT system. The UAE will start registering businesses for VAT in mid-September.
Note 21st Aug: There has been updates to the VAT Regime in UAE & Saudi.
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