The UAE’s Finance Ministry has confirmed certain financial services, residential properties, bare land and local passenger transport will be exempt from VAT. The UAE is set to implement 5% VAT on 1 January 2018. Supplies, including sales or leases, of commercial properties will be taxable at the standard VAT rate of 5% percent but supplies of residential properties will generally be exempt from VAT. In addition, the first supply of newly-constructed residential properties within 3 years of their completion will be zero-rated for VAT purposes. VAT will also be charged at 0% for exports of goods and services outside the GCC and international transportation and related supplies. Supplies of certain sea, air and land transportation (like aircrafts and ships), certain investment grade precious metals (like gold or silver which reach 99% purity), supply of certain education services and supply of relevant goods and services and supply of certain healthcare services and supply of relevant goods and services will be taxed at 0%.