VAT GUIDE – UNITED ARAB EMIRATES

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VAT GUIDE – UNITED ARAB EMIRATES

In the UAE there were not any tax implemented before the year 2018, this tax free country attracts the businessmen to start their businesses here, but the government of UAE decided to implement the Value Added Tax 5% on all the items except food, medical etc.

All the businesses are registered in the VAT and got the VAT Registration No. i.e. TRN. Now it is mandatory to show the VAT 5% amount on their sales invoices.

There is two type of Taxes in VAT:

Input VAT:

When the purchaser purchase the product or material and pay additional 5% VAT with the principal amount it is called Input VAT in the books of buyer or purchaser

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