Recent history in the UAE has seen hundreds of thousands of expatriate workers, tourists and foreign businesses flock to cities like Dubai and Abu Dhabi, with the surging economy offering well-paying jobs and phenomenal business opportunities, while the absence of income or sales tax has made working and shopping in the Emirates exceptionally attractive. The honeymoon of this “tax haven” is set to end soon though — as early as the beginning of 2009 — with the implementation of the government’s proposed value added tax, or VAT. Although Abu Dhabi has been conducting studies concerning this for several years, there was a recent announcement that Dubai Customs — the department responsible for instituting the VAT — is aiming to have all the necessary infrastructure in place by the end of 2008, ready for the government to implement the proposed levy of 3-5% soon after. The stated aim of the tax
