The UAE cabinet has approved a resolution pertaining to the Value Added Tax (VAT) for Conferences and Exhibitions, in line with the government's ongoing efforts to support this sector and to enhance the country's status as a hub for Meetings, Incentives, Conferences & Exhibitions (MICE).

The resolution provides for granting the facilities involved in organising exhibitions and conferences the right to refund the amounts levied on providing such services, to guarantee ease of doing business and competitiveness in this sector, reported state news agency Wam.

It supports, at the same time, the efficient implementation of the tax system, as per the best integrational practices, it stated.

The resolution aims to support the UAE's MICE sector and to maintain the country's global lead in this field, in the light of the facilities offered to develop the sector and the keenness to provide the conducive environment, infrastructure and legislative framework for doing business and to attract the world's leading event oragnising companies.

According to recent statistics, Mice's annual contribution to UAE economy stood at Dh2.39 billion ($650 million) and is anticipated to grow to Dh5.1 billion ($1.38 billion) by 2020.

As per the resolution, any exhibition authorised by the competent local authority that is held for seven days or less, or any meeting between people sharing the same interest and authorised by the competent local authority for seven days or less, shall be eligible for refund of the VAT value, provided that the service recipient has no established base or a permanent facility in the UAE, reported Wam.

The resolution also stipulates that the service recipient must not be registered, or obliged to be registered in the UAE, nor did he pay any tax to the supplier, it added.