What is VAT rate in Northern Emirates?
5%. It is the value-added tax that is designated as a tax on the sales of goods and services by businesses by the Federal Tax Authority.
VAT stands for Value Added Tax. It is a tax that is levied when goods and services are being sold, especially in the physical products segment. This tax is to compensate the federal govt. for spending made towards developing infrastructure, public facilities, and other establishments which help promote competition, efficiency, or import substitution in order to maintain an income stream.
UAE Value Added Tax In Dubai, Abu Dhabi, and the Northern Emirates
VAT rates are uniform among UAE emirates – all seven emirates are having 5%.
VAT Exempted Category in the UAE
The exempted category is as follows:
1. Residence building
2. Finance-related service
3. Bare Land in UAE
4. Transport Services etc.
5. Refunds, taxes, and duties collected on behalf of governmental entities and/or any other public account; and
6. “No Tax Raw materials” are supplied to make finished products. etc.
7. Medical Services and Medicines are exempted from charging Tax.
Also Read,
- Zero Tax Category in the UAE
- Tax in other countries
- VAT in GCC countries
- When was the New Tax Law started in UAE?
- How VAT is calculated?
- What about VAT paid to my suppliers?
- Exempted Categories of goods and services
What is VAT rate in Northern Emirates?