CRYSTAL ACCOUNTING SERVICES

335, Abdulla Al Fahed 4 ,
Damascus Street, Al Quisais,

Dubai, United Arab Emirates

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Mob: 0506818900

Land Line: 042958837

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Your Basic UAE VAT questions answered by Babu Das Augustine, Banking Editor at Gulf News

December 26, 2017

The UAE will introduce Value Added Tax (VAT), a broad-based indirect tax levied on the consumption of goods from January 1, 2018 at a standard rate of 5 per cent.

 

Will selling my property in the UAE be affected by VAT?

No, if the property is residential.

 

Will hotel stays have VAT added to the final bill?

Yes

 

Will going to theme parks and family entertainment venues in the UAE such as Dubai Safari Park, Dubai Parks and Resorts, Ferrari World, Aquaventure, Wild Wadi, cost more with VAT?

Yes

 

 Will buying or selling used cars come under the purview of VAT? 

Yes

 

I am getting married in Dubai; will wedding venues charge VAT for the rent of the space in 2018?

Yes

 

Will my children’s school tuition fees be affected by VAT?

No

 

Will VAT impact school expenses like bus fare, uniforms and text books?

Yes, VAT is applicable on uniforms, text books and stationery. However, bus fare is an exempt category.

 

Would all shopping of clothes, bags, shoes and other outfit essentials be subject to VAT?

Yes

 

Will my morning coffee cost 5 per cent higher with VAT?

Yes

 

Will my gold purchases be affected by VAT?

On gold jewellery and coin purchase you pay VAT, but not on gold bullion (for investments)

Find out today's gold rate in Dubai and the UAE

Will my residential rent be higher with VAT?

No

 

Save even more: What are the cheapest areas to rent in Dubai in 2018?

For expats, will sending money home cost more with VAT?

Yes

 

Will my flight tickets be more expensive with VAT?

No

 

Would I be charged VAT for online shopping on sites such as Souq, ebay or Namshi?

Yes

 

Will my optics expenses comes under the purview of VAT?

Yes

 

Will my petrol be taxed?

Yes

 

Will prepaid phone recharge cards have VAT added to the price?

Yes 

 

Our rent notice renewal amount is the same as for next year amount 100,000, would  it become 105,000?

No, if you are asking about a residential property?

Will VAT applied to the revenues of my newly opened company?

No, VAT is a consumption tax and applicable only to the supplies you make.

 

 

I am renewing the car insurance in December and as of now no VAT is applied on my premium, can the insurance company charge me the VAT in January for the premium I paid in December 2017? 

No. VAT is applicable only from January 1, 2018

 

How about salary; is there VAT or any other tax on salaries?

No, VAT is a consumption tax

 

Do I have to pay VAT on university fees?

Yes, if the university is privately owned and/or funded.

 

Do we need to pay VAT on existing car loans?

No, loans are in the VAT exempt category

 

Will VAT apply on rents also and parking in the building?

No, VAT is not applicable on residential rents. If the parking fee is charged separately, you have to pay VAT.

 

Will metro, tram and bus fares be higher for each trip with VAT?

No

 

Are my post-paid phone bills going to be affected by VAT?

Yes

 

Will the purchase of travel packages online have VAT charges? 

Yes

 

Would resident healthcare and pharmacy costs based on co-payment be higher with VAT? 

No, as long as they are basic healthcare services. This also depends on the health service provider. 

 

Will my ATM transactions be affected by VAT?

No

 

Will getting a driver’s licence (including classes and tests) cost more once VAT comes into force?

Yes

 

Will I be charged VAT when renting office space for my SME?

Yes

 

Will VAT be added to my shipping costs if I send out a personal package or cargo?

No, but this is subject to change and custom duties may be subject to VAT.

 

Will all my tech purchases and services be subject to tax?

Yes

 

Will going to the cinema cost more once VAT is rolled out?

Yes

 

Would salon and spa services be affected by VAT?

Yes

 




















 

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