The UAE Ministry of Finance has conducted feasibility studies on the implementation of a VAT draft law. These studies on taxation and its social and economic implications were conducted for the following years: 2008, 2010, 2012 and 2014. The studies analysed the impact of taxes on the growth of the regional economy and on the UAE’s global competitiveness.
The planned implementation of VAT in the UAE should take place simultaneously with VAT implementation in other GCC countries. Because a final agreement between the GCC countries on the tax rate and the list of tax exemptions has not been reached yet, the draft law is still pending. It is planned that, as from the publication of the final agreement, businesses will have approximately 18 months after enactment of the law to implement and fulfil their tax obligations.
For more details please click HERE