No VAT on air travel, school fees comes as relief for UAE residents

Here is good news for the UAE residents: There will no value-added tax (VAT) on air travel, tuition fees and doctor’s fees. The President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, on Sunday issued Federal Decree-Law No 8 on value-added tax with one of the lowest rates in the world.

The UAE will implement five per cent VAT on goods and services from January 2018 as part of a GCC-wide agreement. “Very important to the wider public is the subjecting of the education and healthcare sectors to zero rate. Tuition fees will, therefore, not increase. The same holds for preventive and basic healthcare,” said Thomas Vanhee, founding partner, Aurifer Middle East Tax.


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