In a recent note, the UAE Cabinet has decided to allow VAT refund for businesses operating in the conferences and exhibitions sector. These businesses would now be able to claim a refund of the tax paid by them on the purchase of services and/or goods for setting up such events.
The move has been taken to ensure that businesses in this sector do not feel the overburden of tax and stay competitive, while keeping in line with the application of the new tax system, i.e. the VAT, efficiently as the valuable source of revenue for the country such that it is matched with the best international standards.
The statement released by the Cabinet explains that facilities that operate in the exhibitions and conferences sector of the UAE can recover the VAT levied on the purchase of services/goods related to these events.
The government, through this step, aims to strengthen the exhibitions and conferences industry and also enhance the country’s reputation as a global hub for any major and minor events.