Dubai – Mubasher: The UAE's Federal Tax Authority (FTA) announced that all purchases made through online shopping portals are subject to a 5% Value Added Tax (VAT).
The new tax is imposed on online sales where a seller’s supplies exceed the mandatory registration threshold of AED 375,000 over the next 12 months, according to Al Bayan newspaper reported, citing FTA's flyer.
The UAE put VAT into effect on most of the products and services as of January 2018.
The UAE targets around AED 12 billion ($3.3 billion) VAT income in the first year, as the tax will be levied on the majority of goods and services, including petrol and diesel, food, clothes, utility bills and hotel rooms.
