Features And Objectives Of UAE VAT
- VAT is an indirect tax which is collected from ultimate consumer and paid to government by various intermediaries.
- It is applied on supply of goods and services.
- It is charged as a percentage on price of goods and services.
- There is no limit on number of intermediaries.
- Each intermediary will add his own margin and pay VAT only on the Value Addition made by him. Hence it is known as Value Added Tax.
- It is aimed as a new source of income for the country which will in turn contribute to provide high quality public services.
- It is a self-assessment tax.