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Draft of the UAE Executive Regulations for VAT to be Released Soon
The UAE’s Ministry of Finance will release the draft of the Executive Regulation of Federal Decree-Law No (8) of 2017 on Value Added Tax in the coming few days which will provide more clarity and details on exactly what items will be taxed.
The Executive Regulations clarify several topics, including keeping accounting records and commercial books related to tax purposes, a period of record-keeping mechanism and saving.
VAT is set for implementation across the UAE from January 1, 2018, at a rate of 5 percent. The implementation comes as GCC governments grapple with lower oil prices, which are pressuring the governments’ revenues and hence, spending.
VAT will follow the rollout of excise tax in the UAE that began from October 1, and that impacted prices of tobacco products, carbonated drinks, and energy drinks.