VAT in the UAE

Daily life in the UAE with VAT

YES All telecom services will be charged a 5 per cent VAT

YES All food and beverages will be taxed

YES School bus fare, uniforms, stationery, electronic equipment etc. will be taxed at 5 per cent

NO Rent or sale of residential buildings or units after first supply is exempt from VAT

YES AND NO Life insurance won't be taxed; but health, house, and other major kinds of insurance are taxable

YES AND NO Vaccinations and essential treatments of humans will not be taxable. However elective and cosmetic procedures or treatments will be taxed at 5 %

YES AND NO Tuition fees are not taxable for schools; however higher education fees by wholly private institutions is taxable

YES Oil and gas products including fuel from the pump will be taxed

YES AND NO Gold jewellery and gold coins are taxable; but gold bouillons for investment will not have VAT

YES Hotels, motels, serviced accommodations will come under VAT of 5 per cent

YES Shopping on e-commerce websites will be taxed at 5 per cent