UAE has no plans to increase VAT | VAT Consultants in Dubai

UAE has no plans to increase its VAT (value-added tax) rate, the country’s finance minister said after Saudi Arabia said it would triple its rate. In Saudi Arabia VAT is increasing to 15 percent from 5 percent from July 1, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus pandemic. The UAE has no immediate plans to increase value added tax (VAT), officials have confirmed.

“The UAE always following protective measures and begin financial initiatives, which protect the national economy and support various business sectors in the country.”

The UAE’s VAT rate currently stands at 5 percent and was implemented at the beginning of 2018 to promote the country’s economic growth and to wean itself off dependence on oil revenues.

In UAE FTA declared in April about VAT payment deadline, that it would delay the due date for payment of VAT from March 31 until May 28, as a measure to support the country’s economy amid the COVID-19 coronavirus pandemic.