Do I need to pay VAT if I’m earning a salary of AED 5000?
Do I need to pay VAT if I’m earning a salary of AED 5000?
Bryce Dsouza
No, you do not need to pay VAT on your salary in the UAE. VAT is a tax on the consumption or use of goods and services, and it is not applicable to salaries or wages. However, when you purchase goods or services in the UAE, the VAT is automatically included in the price and is paid by the consumer at the point of sale. So, while you do not need to pay VAT on your salary, you will still pay VAT when you purchase goods or services that are subject to VAT.
Alexandra
No, Salary is not subject to VAT and, therefore, there is
no impact on salaried persons.