UAE VAT Update

    August 2017

    President His Highness Shaikh Khalifa Bin Zayed Al Nahyan has issued the long-awaited Federal Decree-Law No. 8 of 2017 for Value-Added Tax (the Law), providing some much-needed detail around how the new value added tax (VAT), to be introduced in the UAE on 1 January 2018, will work.

    While many provisions of the Law are consistent with what business and advisors had anticipated, there are some differences, and some of the legislative drafting appears to create ambiguities, gaps and potential loopholes. The Law confirms our view that the introduction of VAT in the UAE will not be straightforward.