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| 19 January, 2018

Online shopping purchases subject to VAT in UAE

The Federal Tax Authority explained in an awareness flyer

Image used for illustrative purpose.

Image used for illustrative purpose.

REUTERS
ABU DHABI  -- The Federal Tax Authority (FTA) has confirmed that all purchases made through online shopping portals are subject to the same 5% Value Added Tax (VAT) as any other purchase made through traditional outlets if the products purchased online are received within the United Arab Emirates.

The Authority explained in an awareness flyer issued today that according to Federal Decree-Law No. (8) of 2017 on Value Added Tax and its Executive Regulations, all online sales are subject to VAT where a seller’s supplies exceed the mandatory registration threshold of AED375,000 over the previous 12 months or the coming 30 days.

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