How VAT is calculated
When VAT is calculated, the tax rate that’s used is the Combined Rate. This 5% rate is for both United Arab Emirates and the Gulf Cooperation Council. Except for Saudi Arabia has an increased rate of 15%.
Knowledge of this rate isn’t very useful on its own, so it’s important to understand how to compute it. The answer lies in the Combined Tax Base – the sum of both spending and selling value created by your enterprise.
Also Read,
- What is VAT rate in Northern Emirates?
- Zero Tax Category in the UAE
- Tax in other countries
- VAT in GCC countries
- When was the New Tax Law started in UAE?
- What about VAT paid to my suppliers?
- Exempted Categories of goods and services