| |
| NEWS CENTRE |
| Sales Tax in DUBAI? |
In 2003, the Gulf Cooperation Council (“GCC”) States entered into a common Customs Union, after standardising the import duties largely at 5%. However, reports from UAE now indicate that Dubai Customs has proposed a 3% VAT rate, which we understand would apply to both goods and services.
The details are still being considered by the government, which currently estimates implementation during the first quarter of 2009. However, fears for the effect on inflation might yet see this date postponed.
Nevertheless, businesses should now begin considering how best to prepare for a Dubai VAT system.
|
