UAE to levy five per cent VAT on e-shopping

Online shopping will not be exempted from the Value Added Tax (VAT) levy which took effect on January 1 in the United Arab Emirates, Ittihad reported.

The UAE Federal Tax Authority (FTA) announced that five per cent would be levied on e-shopping transactions, on equal footing with goods bought through conventional purchases at trading outlets across the country.

According to FTA procedures, the 5pc levy would be paid in the UAE on receiving the parcel purchased online.

The 5pc VAT levy would also apply to all electronic websites whose overall online imports exceed the compulsory cap of AED375,000 over the past 12 months or over the coming 30 days.

The regulations are in line with the Federal Law Decree 8 of 2017 on the Value Added Tax and its executive bylaw.

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