VAT at least a year away

Dubai is unlikely to introduce value added tax (VAT) for at least another year, Dubai Customs said on Monday, clarifying what is described as "false information" that the government was planning impose the tax in the near future.

Dubai Customs confirmed a study on VAT had now entered its second phase, but stressed this did not mean its introduction was imminent.
"Entering the second phase of the VAT project does not mean that the implementation of the tax will be soon, because the process may take one year or more," it said in a statement.
Dubai Customs reiterated that the introduction of VAT would not hit consumers or the economy.

Last month a Dubai Customs official told UAE daily Gulf News that the UAE was close to formulating a strategy that would see VAT added to goods and services within a year.
The head of the taskforce studying this issue has previously said that when VAT is introduced it is unlikely to exceed 5%.
The tax will replace customs duties and may also lead to the cancellation of the 15% municipality tax currently charged on hotel and restaurant bills. Source