The Economic Times

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

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.