UAE VAT changes to increase costs and compliance burden for Indian businesses

Economic Times - Oct 18, 2026

While the rules apply to all businesses operating in the UAE, Indian companies account for about 20-25% of total businesses, with over 265,000 operating as of June 2025, making the changes particularly relevant for them. "Indian-owned businesses in construction, hospitality, manufacturing, logistics, and retail sectors could face a greater impact because of their substantial expenditure on employee accommodation, transport, connectivity and workforce-related services," international tax advocate Priyanshi Chokshi said.

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