Business Magazine

Everything You Might Not Know About Taxes in the UAE

Posted on the 19 May 2022 by Gaurav Kumar @vhowtodo
Many people have heard that the UAE is a kind of tax haven for businessmen, entrepreneurs, and other groups of citizens. Is it really true?

What types of taxes exist in the UAE and how much foreigners need to pay in Dubai - the source https://emirates.estate/ tells its users all about this topic.

The taxation system in the United Arab Emirates supports healthcare, infrastructure, as well as other areas, organizations and institutions to ensure a comfortable life for residents. We suggest considering the main taxes and additional fees in the country.

Income tax - does it exist?

"Is there any personal income tax in the Arab country?" is one of the most frequently asked questions.

the answer is "No, there is not".

What do you need to know about VAT?

VAT is one of the most essential topics in the country for consumers since January 1, 2018.

It belongs to the category of indirect taxes, which is withheld from the payment of services throughout the supply chain.

End users pay VAT. Registered enterprises on behalf of the Federal Tax Authority (FTA) are engaged in its collection and accounting.

They are charge of introducing VAT and other taxes in the country.

5% is the VAT rate in the UAE.

Some products have a zero rating or are exempt from taxation. The list includes:
  • Private and public school education;
  • Healthcare and medicine;
  • International transportation of goods and passengers;
  • Rental sale of residential buildings;
  • Land plots;
  • Passenger transport;
  • Some precious metals.

Do tourists pay VAT?

Like other categories of citizens, tourists pay VAT for various purchases and services. They can also request a refund.

Visitors from other countries can request a VAT refund in the UAE if they buy goods from retailers participating in the "Tourist Tax Refund System".
This is a type of indirect tax in the UAE, which is levied on certain goods, such as products harmful to human health or the environment.
  • Tobacco products;
  • Carbonated drinks (does not include carbonated water);
  • Energy drinks;
  • E-devices and tools for smoking.

For instance, when they leave the country, they can use self-service kiosks at Dubai International Airport.

Excise tax

This type of taxation includes the following categories of goods:

If you need to get advice from a specialist, you can check with a manager.

Help with purchasing a property in Dubai:

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The site contains offers from leading developers, with detailed descriptions, photos, and prices.

If you still have any question, feel free to ask me via comments.
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