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VAT in the UAE starting January 2018

FAQ?

What does the ER (Executive Regulation) say about Designated Zones, (Financial or otherwise)?
A “designated zone” is any area specified as such by Cabinet Decision. As long as the goods remain in the Designated Zone, it acts like a giant bonded warehouse. There will be no consumption of those goods in the jurisdiction. No VAT will be levied, whether on import, sale within the Designated Zone, or on export. (https://www.thenational.ae/uae/vat-in-uae-a-guide-to-what-will-be-taxed-exempt-or-zero-rated-1.674179 )

At a presentation given November 7 in Dubai by the Federal Tax Authority, it was underlined that anything which is not included in the executive regulation as exempt or zero rated is subject to VAT at the standard rate. (From https://www.thenational.ae/uae/vat-in-uae-water-and-electricity-bills-to-be-subject-to-5-1.674175 )

 

Zero-rating and exemptions

 The first supply of residential buildings, the supply of educational services, the supply of essential (ie, preventive and basic) healthcare services, and the supply of investment-grade precious metals are all zero-VAT-rated. The ER provides much greater specificity, enabling taxable persons to know whether a particular transaction will be zero-rated or not. (https://www.thenational.ae/uae/vat-in-uae-a-guide-to-what-will-be-taxed-exempt-or-zero-rated-1.674179 )

For further information of VAT in UAE: https://www.mof.gov.ae/En/budget/Pages/VATQuestions.aspx or https://government.ae/en/information-and-services/finance-and-investment/taxation/valueaddedtaxvat

 

For questions or concerns please contact the Trade Council at the Royal Danish Consulate General in Dubai: dxbhkt@um.dk