UAE may introduce VAT next year

The United Arab Emirates, which has thrived in an environment free of corporate and personal income tax, could introduce value added tax (VAT) next year, the Gulf News reported on Friday.
"We are currently carrying out various studies on the implementation of VAT in a year's time," Abdul Rahman al-Saleh, executive director for corporate affairs at Dubai Customs, told the English-language daily, without giving a rate.
Dubai Customs handles 80 percent of the UAE's imports and exports that are worth around 860 billion dirhams (234 billion dollars) a year, the paper reported.
Dubai Customs recently undertook the second phase of a VAT study that will "include the completion of the legal aspects and the groundwork of its infrastructure, especially the collection of taxes," the paper said.