Do I need to pay VAT on purchasing a car?

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If you are purchasing a brand-new car from the agency, or a pre-owned car registered under the agency or dealer, then you’ll have to pay 5% VAT on the car’s value.

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Source:

Ministry of Finance, Emirates - https://www.mof.gov.ae
Federal Tax Authority - https://www.tax.gov.ae/
VAT in UAE, Khaleej Times - http://www.khaleejtimes.com/business/vat-in-UAE

Frequently Asked Questions on VAT

Do I need to pay VAT on purchasing a car?