Public transport to be exempt from VAT

There will be no increase in taxi or metro fares
ByMashal AbbasiWednesday , 27 December 2017
Public transport to be exempt from VAT

Take the metro to work? Or use taxis a lot? This is for you!

Public transport users can breathe a sigh of relief, as these services will NOT be subject to value added tax (VAT) come 2018. 

Khaleej Times has reported that as per Article 45, the following are exempt from VAT: A motor vehicle, including a taxi, bus, railway train, tram, mono-rail or similar means of transport, designed or adapted for the transport of passengers; a ferry boat, abra or other similar vessel designed or adapted for the transport of passengers; a helicopter or airplane designed or adapted for the transport of passengers and approved for transport of passengers in accordance with Federal Law No. (20) of 1991 on Civil Aviation.

Dilip Jain, VAT lead at the Institute of Chartered Accountants of India (ICAI) VAT Faculty told the UAE daily that uber and Careem may also be exempt from VAT in certain scenarios!

"Where Careem and Uber are used as a taxi for passenger transport; the service will be exempt and no VAT would be chargeable," said Jain.

 Phew, we're glad!

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