VAT will be another source of raising revenues for governments in the Gulf Cooperation Council (GCC).
It is estimated that the UAE will generate more than Dh12 billion additional revenues in the first year after implementation of this new tax.
GCC countries have decided to implement taxation as part of the governments’ efforts to diversify revenues in the context of sharp decline in oil prices. The International Monetary Fund has been recommending fiscal consolidation in the GCC through diversification of government revenues and reduction of subsidies.
Will every thing will be taxable under VAT regime in UAE
Many things even under VAT regime are Tax free