Value Added Tax (or VAT) is an indirect tax. It was introduced in the UAE on 1 January 2018. VAT is a new source of income for the UAE thus ensuring the provision of high-quality public services. It will also help the government move towards its vision of reducing dependence on oil and other hydrocarbons as a source of revenue.
To understand VAT further, please view our PDF File or visit https://www.tax.gov.ae/ar/index.aspx or https://www.mof.gov.ae/en/resourcesAndBudget/Pages/vatquestions.aspx