How VAT in the UAE will affect you

VAT at five per cent comes into effect on January 1, 2018

VAT

VAT comes into effect on January 1, 2018.

Dec 31, 2017

The term "tax" is enough to send a shiver down the spine of most people, but fears of being heavily out of pocket with the introduction of VAT in the UAE can mostly be allayed.

Our handy list - click through the slideshow above - shows where VAT is being charged, and where it isn't.

So, no quibbling that VAT has been added to school fees, because it hasn't. But you can mutter to yourself over the rising cost of school uniform as the VAT rate of five per cent will be applied to that.

Similarly, your rent won't be going up due to VAT, although it might still go up if your landlord decides you are due a hike (within the boundaries of rent caps and rent calculators depending whether you live in Dubai or Abu Dhabi or elsewhere of course).

Other key areas affected include insurance - motor, medical and health - food and beverages, petrol prices and telecoms services such as Etisalat and du.

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Watch: Our video explainer on VAT in the UAE