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Archive photo

In early January 2018, value added tax was applied in the UAE and Saudi Arabia, which is a 5% indirect tax imposed on most goods and services that are supplied at every stage of the supply chain.

The UAE Ministry of Finance confirmed to Al Bayan what was previously announced regarding the absence of any future plans to raise the basic rate applicable to value added tax in the country.

Younis Khoury, Undersecretary of the Ministry of Finance, said in response to "Al-Bayan" inquiries: "As we previously confirmed, there is nothing new regarding the tax rate currently applied."

The Kingdom of Saudi Arabia decided today, Monday, in the framework of austerity measures imposed by the crisis of the spread of the Corona virus, to raise the value-added tax rate from 5% to 15% starting from the first of July, and to stop the cost of living allowance starting from June 2020