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The UAE Tax Rates Are Some Of The Lowest In The World And Items Will Be Marked Before You Reach The Checkout
The first step towards implementing VAT in the UAE will take place on October 1, when between 50% and 100% tax will be added to cigarettes, tobacco and sugary drinks.
This will be followed in January by a 5% tax on further imported goods. President His Highness Sheikh Khalifa bin Zayed Al Nahyan issued the Federal Decree-Law No. 8 of 2017 for Value-Added Tax and you can read the full law here.
It will take two years to fully introduce the taxes, which are expected to provide an estimated AED 7 billion revenue to the government, this will be redistributed to development projects that benefit society at large and accelerate progress in every aspect of society according to Wam.ae.
‘Some of the lowest in the world’
President #Khalifa has issued the Federal Decree-Law No. 8 of 2017 for Value-Added Tax, with one of the lowest rates in the world. #wamnews pic.twitter.com/ptEutKf5Pi
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— WAM News / English (@WAMNEWS_ENG) August 27, 2017
The taxes will be added to product prices, not at the checkout
If you’ve ever visited the states, you’ll understand the pain of additional charge being added when you reach the check out. Luckily the tax system will follow the UK template and the cost of tax will be included in the shelf price according to the National.
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