With effect from January 1, 2018 the UAE travel visas will be imposed with an additional VAT of 5%. It is believed that the decline in oil revenues and failing economy owe to this new VAT that is levied on travel visas. Besides, visas this tax will be applied to good Owing to the decline in oil revenues and failing economy, 5% VAT will be levied by UAE from 1 January. This additional VAT will be applicable not only on visas but also most of the services and goods that includes car hires, sightseeing tours, and hotels.