VAT not to have any negative effects on Expo 2020 Dubai plans and projects
Abu Dhabi: The UAE has the lowest VAT regionally and globally, compared to countries such as UK, Switzerland, Germany, Mexico, South Africa and Australia, according to a recent study by The Alliance Business Centres Network, (ABCN).
The UAE VAT rate is also the lowest among the Arab countries that apply this tax.
Value Added Tax was rolled out across the UAE and Saudi Arabia from January 1 with most items including food and beverages, electronic goods, jewellery, petrol, among others falling under the tax system.
The study, which compared between the UAE and a number of countries around the world, revealed that the VAT in UK and France was 20 per cent, Germany 19 per cent, China 17 per cent, Mexico 16 per cent, South Africa 14 per cent, Australia 10 per cent and Switzerland 8 per cent.
In the Arab countries, the study showed that Tunisia imposes the highest VAT at 18 per cent, Algeria between 7 per cent and 17 per cent, Egypt at 14 per cent and Lebanon at 10 per cent.
The study ruled out the possibility of VAT having any negative effects on Expo 2020 Dubai plans and projects, stressing that these projects have opened up sustainable investment areas for the UAE in all investment and service sectors.
It emphasised that compared to the countries of the region, the UAE proved to be the best when it comes to trust in investments and the availability of comparative advantages that contribute to business growth, especially in terms of infrastructure, transparency, imposition of no income tax and tight investment regulating legislation.