UAE to introduce VAT, corporation tax
Once introduced it would make the UAE the first Gulf state to tax at the point of sale
Shoppers in the UAE could soon be paying more at the checkouts following the introduction of a value added tax (VAT) UAE Arabic newspaper Al Ittihad has reported.
The UAE Government has drawn up plans to introduce both a nationwide VAT and a corporation tax the report added.
Once introduced it would make the UAE the first Gulf state to tax at the point of sale.
It is thought the government has been advised by the IMF to set VAT at 5 percent, although no figures have been released, the report added. But this is likely to be higher for luxury goods, alcohol, and tobacco - while basic goods and essentials would be exempt from the tax.