The VAT has been implemented from 1st Jan 2018, Hospitality segment which includes hotel accommodation, entertainment activities, and restaurant services. An individual must have to pay additional costs at the time of availing hospitality services.
Six states in the Gulf Cooperation Council (GCC) mutually agreed to apply VAT. Through VAT, UAE government will be able to generate $25 billion (Dh91.8 billion) every year.
Every individual in UAE, are expected to pay tax for purchasing goods and services. Applying VAT to goods and services is one of the best measures taken by the government. Through this tax system, the country will be able to generate more revenue. It is expected that UAE country might generate Dh12 billion revenue in introduction year (2018) and might be able to collect up to Dh20 billion in 2019. Read More