UAE online shopping purchases subject to VAT
ABU DHABI, January 20, 2018
The UAE Federal Tax Authority (FTA) has confirmed that all purchases made through online shopping portals are subject to the same 5 per cent Value Added Tax (VAT) as any other purchase made through traditional outlets if the products purchased online are received within the emirates, reported state news agency Wam.
The Authority stated in an awareness flyer issued today that as per 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 Dh375,000 ($102,088) over the previous 12 months or the coming 30 days, it added.
