The reputation that UAE held in the past years for business simplicity was shifted in 2018 after the introduction of value-added tax (VAT). In January, the UAE and Saudi Arabia were among the first members of the six-nation Gulf Cooperation Council (GCC) to introduce VAT at a percentage of 5% on most supplied goods and services.
It was only after the realization of the importance of VAT and the additional source of revenue it could generate, UAE took the strong decision. Although the applicable standard rate of 5% is one of the lowest rates at the global level.
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