Tax Consultancy

The coordination of Value Added Tax (VAT) implementation among the Gulf Cooperation Council (GCC) countries is essential due to Economic Integration, Elimination of Tax Arbitrage, Preventing Tax Leakage, Harmonization of Regulations, Increased Revenue Generation, Enhanced Regional Competitiveness & Collective Decision-Making. While the GCC countries agreed to introduce VAT collectively, each member state has some flexibility in setting its VAT rate (within certain limits) and may have specific provisions and exemptions tailored to their individual economic and social considerations.

Value Added Tax (VAT) is intended to be a broad-based consumption tax that applies to a wide range of products and services. VAT, it typically covers a wide array of goods and services, including but not limited to Goods, Services & Imports. Certain essential items and specific services may be exempted or subject to reduced VAT rates. For example, basic food items, healthcare services, education, and certain financial services may be exempt or taxed at a reduced rate in some jurisdictions to reduce the burden on low-income individuals or for other policy reasons.

Businesses registered for VAT in the UAE are required to submit their VAT returns every three months. The typical VAT return filing periods for businesses in the UAE were as follows: Quarter 1: January to March (VAT return due by the end of April) Quarter 2: April to June (VAT return due by the end of July) Quarter 3: July to September (VAT return due by the end of October) Quarter 4: October to December (VAT return due by the end of January)

Some common exemptions from VAT in the UAE include Healthcare Services, Education, Financial Services, Local Transport, Residential Real Estate, Certain Food Items & Medical Equipment and Aids.

The United Arab Emirates (UAE) does not have a federal income tax on individuals personal income. The UAE is known for its tax-friendly environment, and residents are not subject to personal income tax at the federal level.