UAE will not follow Saudi Arabia VAT hike
Finance ministry says VAT rate remains unchanged at 5 per cent
The UAE government has dismissed rumours that the rate of value-added tax (VAT) would be raised in line with Saudi Arabia’s recent decision to triple its VAT rate.
The Ministry of Finance confirmed the UAE would continue to charge 5 per cent VAT.
Saudi Arabia’s rate of VAT will rise three-fold from 5 per cent to 15 per cent in July.
Riyadh also approved SR100bn ($27bn) of planned spending cuts to support the Saudi Arabian economy as it contends with low oil prices and Covid-19.
VAT was introduced in the UAE on 1 January 2018 and as a general consumption tax, applies to the majority of transactions related to goods and services.