At the moment No Plan to raise VAT to more than 5% in the UAE.(Saeed Rashid Al Yateem)

AED 11.6 billion of total VAT revenue during January-August 2020(Ministry of Finance)


The Ministry of Finance (MoF) announced today that from the beginning of January until the end of August 2020, the total value-added tax (VAT) revenue amounted to AED 11.6 billion, and the country’s total excise tax revenue amounted to about AED1.9 billion – the latter noting a 47% increase in comparison to the same period in 2019.

H.E. Saeed Rashid Al Yateem, Assistant Under Secretary of Resource and Budget Sector at MoF, noted that 30% of VAT revenues will be distributed to the federal government and 70% to local government. H.E. Al Yateem mentioned that the federal government’s share of excise tax revenues on tobacco products is 45% – with 55% for local governments –  and the federal government’s share of the excise tax revenues on other excise goods (i.e. energy drinks, soft drinks as well as beverages sweetened with added sugar) is 30%.H.E. Al Yateem said: “Tax revenues contribute to the continued implementation of development projects in accordance with the UAE government’s plans, and to mitigating the repercussions of the COVID-19 pandemic. Therefore, MoF continues to follow up on tax policies in coordination with the Federal Tax Authority (FTA) to ensure they’re in line with developments in the regional and international arena and that legislations are continuously updated in accordance with financial policy objectives and sustainable economic growth.”


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