As easy as one, two, three.
What do you need to know about UAE VAT?
In October 2017, the UAE implemented new tax rules which land a levy of 50% on carbonated drinks and 100% on tobacco and energy drinks, as well as further measures set for January 2018 centring on a levy of 5% on consumer products (including property).
Private individuals can rest assured that the new VAT doesn’t affect essential products. Ring-fenced is a basket of 100+ basic foods, such as children’s milk, pasta, rice, cereals, tea, and coffee. Also, the education and healthcare sectors, public transport, and commodities will not be affected.
When it comes to the buying and selling of residential properties, the tax is expected to be paid on the first sale only – and residential leasing will be exempt.
As a business owner though, you need to be on your toes. And, if you’re looking into buying, selling or leasing property, you need to be aware of exactly when the 5% applies.
From January 1st 2018, businesses should already possess an accounting and billing system that is compliant with the new requirements of the tax regime. The invoices should include the VAT component. Non-compliance can result in severe penalties.
Why choose Holborn Assets?
As a family-run company, transparency is second nature to us. Our operation has grown internationally on the basis of the trust that exists between our staff and our clients.
Training and Qualifications
For all our staff we provide continued professional development in both “soft” skills and “hard” technical areas to enable them to work confidently on our client’s behalf. As a result, our advisers can all guarantee the requisite level of qualification in their area of expertise and geographical operation.
Client-centred from cradle to grave
We have structured our business and invested in staff and infrastructure with the single aim of helping our clients to achieve their financial goals over the long run. Our advisers will be in your corner for the duration; we offer support at every key financial milestone of a client’s journey from cradle to grave, with a combination of astute long-term planning and immediate help on the phone when you need it.
Get in touch
Complete the form if you’d like to discuss UAE VAT and how Holborn Assets can help.
History and heritage
Holborn Assets was established in 1998 and is widely considered to be the financial services company of choice in the expatriate market it serves. No other independent company can match our expertise or depth of proposition. We have therefore always felt at home headquartered in Dubai, the world’s fastest growing City State and one of the economic wonders of the world.
Holborn Assets has regulated operations in the UK, Europe, Asia and South Africa and a global administration hub employing 150 people in Sri Lanka. The corporate DNA that has underpinned our growth is simple: we are passionate about helping people put the right money, in the right place, at the right time.
We are a friendly, family company with British values of integrity and respect for all.
Don’t just take our word for it
Latest other services blog articles
How Will the New Tax Year Affect Your Pension?
The new UK tax year began a fortnight ago on 6 th April 2019. That’s good news for your pensions. If you receive a state pension or pension credits, you will get more. And, if you are auto-enrolled with a work pension in the UK, you and your employee will be making bigger contributions every month to swell your pension pot. Read More
How to Make the Most of Tax-Free Earnings
Expats have plenty of spending options to enjoy – thanks to… Read More