UAE introduces VAT | tutor2u Economics

Tax reform in the United Arab Emirates as VAT of 5% on most goods and services has been introduced from the 1st of January 2018.

The policy change is part of a strategy to diversify the sources of tax revenues as oil prices have fallen. But there are no plans to introduce income tax, which for the majority of people in the UAE remains zero.

VAT is a tax on producers, it is charged at each step of the supply chain and consumers generally bear the VAT cost as suppliers pass on the burden of the tax to the final purchaser.

The UAE and other countries in the region have long relied heavily on inward migration of workers to sustain their economic growth. Will the end of tax free living be affected by the introduction of VAT?

Some items will be exempt including for example, tickets on the Dubai metro and the cost of exam fees!

Subscribe to email updates from the tutor2u Economics

Join 1000s of fellow Economics teachers and students all getting the tutor2u Economics team's latest resources and support delivered fresh in their inbox every morning.

You can also follow @tutor2uEconomics on Twitter, subscribe to our YouTube channel, or join our popular Facebook Groups.

Job board

Head of Economics and Business

Pangbourne College, Pangbourne

New

Recruitment

Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u

A New Home for tutor2u Resources

We've just flicked the switch on moving all our digital resources to instant digital download - via our new subject stores.

For every subject you can now access each digital resource as soon as it is ordered. This will always be the latest edition of each resource too (and we'll update you automatically if there is an upgraded version to use).

Simply add the required resources to your cart, checkout using the usual options and your resources will be available to access immediately via your mytutor2u account.