Should I pay VAT on government services?
Should I pay VAT on government services?
Tyche FD
In the UAE, government services are generally exempt from Value Added Tax (VAT). However, there are exceptions for certain services, so it's advisable to check the specific service and its VAT status to ensure compliance with tax regulations.
Josna Thomas
Government services in the UAE are generally exempt from Value Added Tax (VAT).
Jenifer. Lovely
Government services in the UAE are generally exempt from Value Added Tax (VAT).
Bryce Dsouza
Please refer to the table below with regards to VAT on government services in the UAE:
Type of government activity | VAT rate |
---|---|
Sovereign activities which are not in competition with the private sector undertaken by designated government bodies | Considered outside VAT system |
Activities that are not sovereign or are in competition with the private sector | VAT rate dependent on good/service, regardless of provider |
Bella Linton
For availing government services in UAE, you will not be charged tax. However, some government services like the issuance of driving licences, passports, etc, may be subjected to VAT.