The United Arab Emirates is introducing a new tax measure in September 2026. Under the new rules, some short-term visitors may be treated as non-residents for VAT purposes.
However, this status will only apply when specific conditions are met. The change is part of a broader update to the UAE’s tax regulations.
A New Rule for Stays Under 30 Days
Recently, the UAE adopted Cabinet Decision No. 149 of 2026. The decision changes several provisions of the country’s VAT regulations.
Among the changes is a new approach to people staying in the UAE for short periods. Under the new rule, a person staying for less than 30 days may be treated as living outside the UAE for tax purposes.
However, this will only apply if their presence is not linked to supplying the relevant goods or services. As a result, the change could affect how VAT is applied to certain transactions.
Several Changes to the VAT System
Meanwhile, the new visitor rule is part of a broader overhaul of the UAE’s VAT framework. The updated provisions cover several areas of taxation.
These include VAT recovery on certain major cash payments, employee housing and medical products. They also address fixed assets and composite supplies, among other transactions.
According to the Ministry of Finance, the reforms aim to simplify tax procedures and improve compliance. They also seek to reduce tax evasion risks while providing clearer rules for businesses and taxpayers.
A Broader Tax Reform
In addition, the reform highlights the UAE’s continued efforts to improve its tax administration. By updating VAT rules, the authorities aim to make tax obligations easier to understand.
The changes could also help businesses adapt to evolving tax requirements. Clearer provisions may support more consistent VAT treatment across different transactions.
Overall, the measures reflect the UAE’s efforts to modernize its tax system. At the same time, they aim to bring the country’s VAT framework closer to international best practices.
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