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country-icon Émirats arabes unis

02.23.23

VAT becomes the primary source of tax revenue

The UAE implemented VAT at 5% in January 2018 in accordance with the GCC (Gulf Cooperation Council) VAT framework.   The total revenue collected from VAT has reached more than Dh 95.4 billion ($26 billion) as of October 2021.     “Now that we have passed the five-year mark since the introduction of VAT, it is fair to conclude that the tax has been a success and a true testament to the UAE’s ability to adapt to the new economic realities,” Nimish Goel, Partner at WTS Dhruva Consultants, spoke at the fifth anniversary of VAT. Additionally, reports have revealed that VAT will continue to be the primary source of tax revenues for a few more years in the country.    

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