Description
UN SDGs:
SDG 8: Decent Work and Economic Growth
SDG 9: Industry, Innovation, and Infrastructure
SDG 17: Partnerships for the Goals
INTRODUCTION
On January 1, 2018, the United Arab Emirates (UAE) implemented a Value Added Tax (VAT) at a standard rate of 5%, marking a significant shift in the country’s fiscal policy. The introduction of VAT was a part of the Gulf Cooperation Council (GCC) agreement, driven by the need to diversify government revenue streams away from oil dependency. This case study explores the impact of VAT implementation on businesses in the UAE, focusing on how companies responded to the new tax regime, the challenges they faced, and the strategies they employed to comply with the new regulations. The study also examines the broader economic implications of VAT on the UAE’s business environment and consumer behavior.