VAT: What will be taxed and what won't

VAT: What will be taxed and what won't

12 Nov 2017

Here's everything you need to know

It's almost time people.

There are only 53 days left until the implementation of value added tax (VAT) here in the UAE. Starting 7am on January 1, 2018, new prices will come into effect across the country, reports Gulf News.

There has been much talk about what goods and services will be taxed and what won't, let's break it down. 

What will be taxed: 

  • Food
  • Water bills
  • Electricity bills
  • Cars
  • Car rentals
  • Jewellery
  • Smartphones
  • Electronics
  • Watches
  • Dining out
  • Entertainment
  • Plastic surgery
  • Tenancy contracts
  • Commerical rents
  • Hotels and serviced apartments
  • Private school books
  • School uniforms for both private and public education

What will be exempt from tax:

  • Residential rents
  • Air travel
  • Exam fees
  • Medical fees
  • Basic and preventative surgery
  • Medicine
  • Local transport
  • Public school books

Visitors to the UAE will be able to claim their tax back when leaving the country, so that's good news. For us residents, let's see how things go!