An Assessment of the Potential VAT Revenue Collection for the United Arab Emirates

This study analyses the effect of a 5% VAT in the UAE for the period 2018–2022. The methodology includes collection efficiency, standard tax rate and the final consumption expenditure (FCE). Various scenarios are analysed, including a constant 5% VAT for 2018–2022; increasing it by 2.39% yearly; increasing it to reach the maximum 2014 country tax rate of 27%; or increasing it to reach an average tax rate of 19.1%. The collection efficiency values of 0.4–0.7 result in a 2018–22 tax revenue to GDP range of between 1.75 and 7.84%