A statement from the Ministry of Finance on VAT


Dubai: Abeer Abu Shamala
The Ministry of Finance in the UAE issued a statement denying the existence of any plans at the present time to raise the value-added tax in the UAE, which is currently imposed by 5%, confirming the ministry’s commitment to achieving its goals and approved development plans ».
Younis Haji El Khoury, Undersecretary of the Ministry of Finance, said in the statement that the ministry’s focus now is to work with all government agencies according to the guidance of the wise leadership to review the priorities for the stage “after Coffed-19” and reorient the financial resources to prepare for the future and continue to grow and ensure the security and safety of society and individuals.
He said: «We are working in the Ministry of Finance to study our financial system and enhance its readiness to manage the next stage, to support all vital sectors, by developing innovative programs and projects that enhance our ability to continue the development process and put people at the top of their priorities, to build a secure future for future generations, and achieve the well-being and stability of our society . The UAE has been keen on implementing precautionary measures and launching a package of financial and economic initiatives, which work in its entirety to protect the national economy and enable business sectors, to enhance financial stability and sustainability in the country.
Al-Khoury had confirmed in connection with the “Gulf” that there are no plans to raise the applicable rate of value-added tax. In response to a question about Saudi Arabia’s decision to double the value-added ratio 3 times to 15% and the impact of the decision on the agreement between the countries of the region regarding value-added tax, he said: Every country in the Gulf Cooperation Council states has the right to take its own decisions in a manner commensurate with their situation without imposing changes Over the rest of the countries. He stated that the tax rates applied in the European Union countries are not uniform, as every country makes decisions at this level according to their conditions, stressing that the UAE Ministry of Finance has no plans to raise the value-added tax rate from its current level of 5%.
On Monday, Saudi Arabia announced a series of financial support measures, including raising the value-added tax to 15% from July 1, 2020.


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