VAT in UAE 2018 The VAT in UAE was officially announced on January 1, 2018.Here is good news for the UAE after announcing the VAT. There will no value-added tax (VAT) on air travel.The UAE will implement five per cent VAT on goods and services from January 2018 as part of a GCC-wide agreement. After VAT its required for Registration for VAT.When you are worried about higher prices this year as Value-Added Tax (VAT) gets rolled out across most of the product categories But you can expect some relief in the aviation industry.According to article 33 of the executive regulations on the VAT, transporting passengers in the country and out of the country is subject to zero tax rates, meaning it’s not just your airfares that won’t be taxed; cargo is also zero-rated. The standard VAT rate in UAE is 5%, The VAT will be paid by a business in UAE as per the VAT rules and regulations on any of their taxable supplies of goods and services while some other services will be taxed at zero percent.The UAE has aimed to reduce the country’s dependency on oil resources for revenue.You can also find out more about VAT-exempt and non-exempt supplies on our blog and news.
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