Taxes

Previously, member countries of the Cooperation Council for the Arab States of the Gulf (GCC) were known as tax-free countries. However, this changed in 2018, primarily to reduce budget deficits due to subsidies and low crude oil prices.

On January 1, 2018, the federal government of the United Arab Emirates implemented a value-added tax (VAT) of 5% for goods and services, including gasoline and diesel, at each step of the supply chain.

Additionally, a zero rate of VAT is implemented for crude petroleum and natural gas.