All products in the UAE will be subject to VAT.

Starting in 2018, all types of food in the United Arab Emirates will be subject to value added tax.

All types of products in the UAE, including basic goods such as bread and rice, will be subject to VAT from January 1, 2018, the Federal Tax Administration (FTA) reported Wednesday morning.

It was previously thought that certain types of food products would be taxed at zero rates or would be exempt from taxation.

FTA Director-General Khalid Al Bustani said that certain goods and services are subject to a special regime, such as public transport, commercial airlines, precious metals for investment purposes, oil and natural gas supplies, as well as education and healthcare. Many of these goods and services are not taxed because they are of great social importance.

Watch the video: HOW VAT WORKS IN DUBAI,ABU DHABI,UAE, 01 JAN 2018 (March 2024).