Value Added Tax (VAT) was introduced in the United Arab Emirates (UAE) on January 1, 2018. It is a consumption-based tax levied on the supply of goods and services at each stage of the supply chain. The standard VAT rate in the UAE is 5%, with some goods and services being exempt or zero-rated. VAT has brought about significant changes in the business landscape of the UAE, requiring businesses to maintain accurate records, issue tax invoices, and submit regular VAT returns. This tax has played a crucial role in diversifying the UAE’s revenue sources, reducing reliance on oil, and supporting the government’s efforts to build a sustainable economy for the future.