The UAE’s Ministry of Finance will not Impose VAT Increase in the Country

The United Arab Emirates’ (UAE) Ministry of Finance (MOF) is not currently planning to raise its value-added tax (VAT) rate of 5%, following Saudi Arabia announced it was tripling its rate. In a surprise move, Saudi Arabia increased the VAT rate from 5% to 15% effective June 2020, and also suspended the cost of living allowance to increase revenues.

Younis Haji Al Khoori, the Undersecretary of the MOF stated that the MOF will reorient the financial resources to prepare for future and continued growth to ensure the security and safety of the communities while focusing on working with all state entities to assess the priorities for the post-pandemic era.

Al Khoori added that the...