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Do you have any questions related to VAT?
For more information contact your b
usiness unit Finance Manager or Medhat Moheb,
Manager Internal Audit & Controls
(medhat@habtoor.com)at the AHG head office.
5) Water and electricity will be treated
as supplied goods, and therefore
subject to a 5 per cent value-added
tax (VAT).
Are prices VAT-inclusive or not?
“Advertised” prices must include
VAT. That means shop prices will be
VAT-inclusive, providing clarity and
certainty for the consumer – there
won’t be an extra 5% added to the
sticker price at the cashier. Other
instances, where the price might
not include the tax (for example to
wholesalers), will be explained in the
Executive Regulation.
Will tourists be able to reclaim
VAT?
The VAT Law says that the Executive
Regulation may contain conditions for
the return of tax paid by a non-resident
for goods supplied in the UAE that will
be exported. So, the answer is “quite
possibly”.
What should businesses be aware
of now?
Businesses should be familiarising
themselves with what the VAT Law
says, and how it will apply to their
business. Given that the start date for
VAT is January 1, 2018, businesses
should look, in particular, at the
Transitional Rules (Article 80).
Source: The National