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ABU DHABI / WAM
The Federal Tax Authority (FTA) has announced the sectors that will be subject to Value Added Tax (VAT) as of January 1, 2018, revealing selected sectors will be assigned zero-rated tax, such as education, healthcare, oil and gas, transportation and real estate.
According to a statement released by the FTA, selected supplies in sectors such as transportation, real
estate, financial services will be completely exempted from VAT, whereas certain government activities will be outside the scope of the tax system – and, therefore, not subject to tax. These include activities that are solely carried out by the government with no competition with the private sector, activities carried out by non-profit organisations. The UAE Cabinet is expected to issue a decision to identify the government bodies and non-profit organisations that are not subject to VAT.