UAE VAT: A Royale with Cheese

Abstract

In this article, the authors draw parallels between the VAT systems of the European Union and that of the United Arab Emirates and, specifically, with regard to the most recent UAE public clarifications (on bank interest, dividends, donations and sponsorships). The similarities noted by the authors should provide additional insight into the application of UAE VAT with respect to the aforementioned topics. Furthermore, in the absence of (extensive) guidance on a myriad of other topics and with no UAE case law as reference, EU case law has the potential to provide UAE taxable persons with some much needed guidance.