The United Arab Emirates introduced Value-Added Tax (VAT) on 1 January 2018 at a standard rate of 5%. VAT applies to most goods and services and was implemented to diversify government revenue beyond oil income.
Certain goods and services are either exempt or subject to a 0% VAT rate, including:
- Exports outside the VAT-implementing Gulf Cooperation Council (GCC) member states
- International transportation
- Healthcare and education
- The supply of crude oil and natural gas
Table of contents
VAT rates in the UAE
| Rate | Type | Examples of Goods & Services |
|---|---|---|
| 5% | Standard | Most goods and services |
| 0% | Zero-rated | Exports outside GCC, international transportation, healthcare, education, certain real estate transactions |
For more details on VAT regulations, visit the Ministry of Finance website.