UAE residents paid Dh27 billion in VAT to the UAE last year

By Eudore R. Chand

VAT distribution between federal and local governments approved

DUBAI 3 June 2019: The UAE Cabinet has approved distribution of the value-added tax (VAT) revenues, which totaled approximately Dh27 billion between the federal and local government.

According to the decision 30 per cent of the revenue will go to the federal government, and 70 per cent to the local governments.

The decision ensures the sustainability and the quality of government services. It also contributes to the development of economic and social projects and public services, said Wam.

VAT was introduced in the UAE on 1st January 2018. The rate of VAT is 5 per cent. VAT provides the UAE with a new source of income which will be continued to be utilised to provide high-quality public services.