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10 important things you need to know about VAT in UAE

For data packages, any plan taken in 2017 and spilling over into 2018 will be subject to VAT

Here's a rundown of what you need to know about VAT - from what products and services are subject to it to knowing whether companies are trying to pull a fast one on you

If and only if

Businesses are not allowed to charge VAT unless they are registered with the Federal Tax Authority and have a tax registration number (TRN)

Full details

Details of VAT should be displayed on the tax invoice issued to customers, which should include the total amount and tax being charged, plus the TRN

Loose change

In cases exact change cannot be given, rounding off can be applied; for example, 13 fils can be rounded off to 25 fils, 39 fils to 50 fils and 69 fils to 75 fils

Enjoy for a little more

Leisure and entertainment services - including theme parks, cinema tickets, concerts and restaurants - are subject to VAT

Save on Salik by.

.buying cards online - it won't cost you anything extra. Salik cards are subject to VAT when bought in stores

Health benefits

Consultancy and medicines are zero-rated for preventive- and treatment-related services

Learn it

VAT will directly hit universities, unless it is 50% funded by a government grant. The only exception is the rent in student accommodation

Jewellers

VAT is implemented on investment gold, silver and platinum jewellery with 99% purity. For consumers, the tax is applicable on the entire piece rather than on making charges. However, some companies are happy to absorb the VAT cost, mostly on diamonds

Your call

There are no extra charges on recharge cards. For data packages, any plan taken in 2017 and spilling over into 2018 will be subject to VAT

There are no extra charges on recharge cards. For data packages, any plan taken in 2017 and spilling over into 2018 will be subject to VAT

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