Go Back

Our Blog

VAT – Everything you need to know as a parent in Dubai

February 20, 2018
Posted by: Kidzapp
Health & Nutrition, Parenting

There are several things to look forward to in the New Year, the most important being VAT. The UAE Minister of State for Financial Affairs, His Excellency Obaid Humaid Al Tayer, has stated that the UAE will implement VAT at the rate of 5% on 1 January 2018.

The world’s most common form of tax, the value added tax (VAT) is 1) a consumption tax, and 2) placed at the final point of sale. Everybody from companies and consumers, homeowners to tenants and importers to re-exporters will be affected by it in some way or the other. What this essentially means for parents all over the country, is explained here.

The good news is that there will be no VAT on school fees essentially. The bad news and just in case you were thinking savings; it will apply to uniforms, school transport, food & beverages at school, field trips and extra-curricular activities.

Basic, preventive services at the hospital will be exempt. So while you can bring on the flu all you like, insurance policies barring Term Insurance will be subject to 5% tax.

Products that are not medicine or medicine-related will bear the brunt of 5%. Get used to living with the fact that electronics, home appliances, children’s clothes and essentials are going to become dearer, whether we like it or not.

Amidst confusion on whether food will be taxed or not, either at supermarkets or restaurants alike; the UAE will apply the upcoming VAT to all food items and utility bills, according to the last word from the officials.

Residential tenants can sit tight as there will be no VAT on rents, at least as of now and where the lease is longer than 6 months. For arrangements such as serviced residential apartments, the tax category is yet to be decided and let’s hope it’s not too bad either.

Leave a comment

Related Articles

Elements Brunch, Le Royal Meridien Hotel , Downtown Abu Dhabi

March 19, 2019
Posted by: Rachael Salahat

If you’re in the market for a nice brunch here in Abu Dhabi, one that is a nice change to traditional brunches and one that is also kid friendly (yay!), then you really need to check out the Le Royal Meridian Elements Brunch! Kidzapp has an awesome exclusive offer right now for their brunch that Read more

Laguna Water Park Birthdays

March 16, 2019
Posted by: Laura Buckwell

Laguna Waterpark Dubai – definitely the place to be if you are looking for a non pretentious, down to earth fun birthday party venue for both kids AND parents, this is definitely the one to book. We went for the platinum package which includes an e-invite, party decorations, a kids meal with slushy, 4 hours Read more

Free and Fun in the UAE: 20 things to do with the kids

March 4, 2019
Posted by: Kidzapp

Having fun with the kids in the UAE doesn’t have to be expensive. In fact, there are lots of Free and fun things to do, you just need to know where to look! That’s why we have selected our top 20 things to do as a family, that will cost you AED 0 (just make Read more