From everyday food items, school uniform, books and bills...here’s all you need to know
Due to be implimented at 7am on 1st January 2018, Value Added Tax (VAT) will involve a 5% charge being added to a number of products and services across Dubai. It will affect each and every one of us living in the city so here is a rundown of what will and will not be affected by the new laws.
Items to carry 5% Tax include:
Food: All types of food in the UAE, including staples such as bread and rice.
Water & Electricity
Jewellery: The VAT on gold jewellery will apply to the entire piece, but there will be no duty on loose diamonds.
Cars & car Rental
Electronics: Despite having some of the lowest prices in the world, the added VAT should still offer good value for products.
Eating Out: Diners will see the VAT included on their bill for any meal.
Hotels & Services Apartments
Private & Public School Uniform
Private School Books
Businesses: All businesses that meet the minimum annual income of Dh375,000 will pay VAT.
Items exempt from the new Tax Law include:
Basic & prevenative Surgery
Public School Books