Revealed: how much VAT is worth to the UAE

UAE Cabinet approves distribution of VAT revenues of $7.4bn between the federal and local government
Revealed: how much VAT is worth to the UAE
VAT was introduced in the UAE on January 1, 2018 at a rate of 5 percent.
By Sam Bridge
Thu 30 May 2019 05:21 PM

The UAE Cabinet has approved distribution of the value-added tax (VAT) revenues totalling about AED27 billion ($7.4 billion) between the federal and local government.

According to the decision, 30 percent of the revenue will go to the federal government and 70 percent to the local governments, state news agency WAM reported on Thursday.

It said the decision ensures the sustainability and the quality of government services and also contributes to the development of economic and social projects and public services.

VAT was introduced in the UAE on January 1, 2018 at a rate of 5 percent.

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