The UAE's Federal Tax Authority (FTA) introduced VAT on 1 January 2018. It has been the biggest tax reform for the country till date. Ever since VAT got implemented, it has created an alternate source of income for the government of UAE that was erstwhile heavily dependent on its oil and hydrocarbon products. Furthermore, the funds collected via VAT are now being used for the development of public facilities and world-class infrastructure.
VAT has also brought upon a paradigm shift in the business dynamics of existing organizations in UAE and even the ones looking to foray into the UAE markets. Over 150 countries have already implemented VAT, which remains one of the most common types of consumption tax all over the world