• June 18, 2018
    Last updated 6 minutes ago

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How will VAT affect you?

There’s good news for parents but bad news for people used to an expensive lifestyle

15:35 August 22, 2017

Seven in ten Gulf News poll respondents are not up to speed with the new value added tax (VAT) law in the UAE.

They have four months to catch up, as the implementation of VAT will begin on January 1, 2018.

The rate is expected to be set at five per cent, and will apply to a majority of transactions in goods and services. This means the cost of living will likely go up slightly for a lot of people, but it all depends on your buying preferences and lifestyle.

A more expensive way of life equates to more taxable goods.

However, there is good news for parents, according to the page A6 report, “VAT ‘won’t be applied to nurseries, schools’”, published in the Nation section on August 22. Schools will not be allowed to raise fees over VAT.

Have questions about VAT? Share them with us at readers@gulfnews.com.