BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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15%
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10%
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5%
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There is no VAT in the country.
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Detailed explanation-1: -The general VAT rate is 5% and applies to most goods and services, with some goods and services subject to a 0% rate or an exemption from VAT (subject to specific conditions being met).
Detailed explanation-2: -In UAE, the standard VAT rate is 5% on invoice value (barring special cases like the profit margin scheme). For instance, in case the Cost Price of the goods/services is = AED 100. Now, the VAT rate is 5%. In that case, the Input VAT will be 100x5%= AED 5.00.
Detailed explanation-3: -The GCC framework has agreed on three VAT rates that may be levied by the member states with some degree of discretion. The first two are taxable supplies, while the third is a tax exempt supply.
Detailed explanation-4: -From 1 October 2021 the VAT rate increased to 12.5% until 31 March 2022. What next?