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Value-Added Tax (VAT) in the United Arab Emirates (UAE) was introduced on January 1, 2018, at a standard rate of 5%, one of the lowest in the world. The VAT review in the UAE is based on a destination principle, meaning goods and services are taxed in the country where they are consumed.<br>This indirect tax is levied at each stage in the supply chain, from manufacturer to retailer, on most goods and services, except for some exempt and zero-rated items. Exemptions often include certain financial services, residential properties, and local transport, while zero-rated items typically cover certain
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