Start of 2018 and businesses in UAE already levied VAT rate 5% to most goods and services. Consumers usually bear the cost and establishment collect and will report the collection to the Tax Authorities. There may be some some exemptions and the following are:

VAT will be charged at 0% in respect of the following main categories of supplies:

• Exports of goods and services to outside the GCC States that implement VAT
• International transportation, and related supplies
• Supplies of certain sea, air and land means of transportation (such as aircrafts and ships)
• Certain investment grade precious metals (e.g. gold, silver, of 99% purity)
• Newly constructed residential properties, that are supplied for the first time within 3 years of their construction
• Supply of certain education services, and supply of relevant goods and services
• Supply of certain Healthcare services, and supply of relevant goods and services

VAT will be charged at 0% in respect of the following main categories of supplies:

• The supply of some financial services
• Residential properties
• Bare land
• Local passenger transport