The UAE Value Added Tax (“VAT”) comes on effect on January 1st 2018. The standard rate of 5% will apply on most goods and services unless specifically designated as zero rated or exempt.
Taxable goods and services provided by UAE companies with annual revenue in excess of AED 375 000 are required to register for VAT unless exempt. Companies are required to register 3 months before this date, in Q4 of 2017, and will be provided with a Tax Registration Number (TRN). Voluntary registration is permitted for businesses with revenue of less than AED 375 000 but more than AED 187 500.