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

Top 10 Theme Parks In Dubai And Abu Dhabi

February 24, 2020

Ready for a thrill? Families who are up for an adventure are absolutely spoilt for choice in the UAE with some of the world’s best theme parks. Whether you want to brave it on hair-raising rollercoasters, experience arctic temperatures indoors, or meet Marvel superheroes, dinosaurs or some of your favourite animated characters, this is our Read more

The Benefits Of Gymnastics Classes For Kids

February 20, 2020

Gymnastics is a great sport for children to be involved with and gives a wide range of transferable skills that can be applied to become both an excellent gymnast as well as a well-rounded athlete. Below we will explore the key benefits that children will enjoy during gymnastics coaching sessions and will hopefully give that Read more

11 Birthday Party Deals In Dubai & Abu Dhabi

February 18, 2020

Planning a party for your little one? Let’s be honest, it can be quite a costly affair to put on a birthday celebration for your boys and girls. That’s why we’ve put together a list of 10 great birthday party deals to help you save on those dirhams. 1. 15% off Reel Junior Birthday Package Read more