If you happen to be an entrepreneur located in UAE for some time, and are planning to do so for the future, you must have heard about Value Added Tax. At its core, it is a different type of tax when you compare it to other forms of taxes in the country. Value added tax, as the name suggests, is usually imposed on items that are not used by people on regular basis. For instance, you will find cigarettes and other forms of recreational stuff filling shelves of every superstore and mart around you.

Of course, these are not going to provide nutritional value or other types of benefits. However, there is no denying that VAT adds a lot to versatility to the economy of the country where it is used. In terms of versatility, the VAT is nothing short remarkable as it offers a very easy way of tax collection. The ease of collection is such that different types of businesses are allowed to collect the tax. This type of taxing method has been used around the world since 1950s. There is no rule of thumb as to who will collect the tax. The method allows the government to impose the tax on buyers and will be collected by suppliers as well as vendors. Here, the notable point is that the tax will be imposed on raw materials as well as products. In some cases, the tax is also imposed on the sales of different types of services. Here is more on what VAT training in UAE is and what benefits it brings to economies:


If you are a customer, you have the benefit that you will not be charged VAT directly. It is the responsibility of those who either make the products or sell services. Since UAE is a highly visited country, the government will likely benefit from the VAT more than any other entity. The tourists will be indirectly charged the tax that goes straight to the revenue department. It is a known fact that VAT rate varies in different countries. Nothing is decided so far but there is a possibility that the tax might range between 12-15%. Keep in mind that the ratio is still a guess work and it may well be more or less. The key point here is to understand the fact that UAE is soon going to be a country where manufacturers and sellers will be collecting and sending the VAT amount to the government.

Discover here more about VAT and how it will help the country’s economy in the longer run.