FTS of the United Arab Emirates has published an official announcement that all purchases in online stores are also subject to VAT.
The UAE Federal Tax Service (FTA) has confirmed that all purchases made in online stores are also subject to a 5% value added tax, like any other purchase in a traditional store, if goods purchased online are received in the United Arab Emirates.
In its newsletter published today, authorities notified that, in accordance with Federal Decree-Law No. 8 of 2017 “On Value Added Tax” and its executive orders, all online sales are subject to VAT in the event that seller’s deliveries exceed mandatory the registration threshold of 375,000 dirhams for the previous 12 months or will exceed those after 30 days.
