Discover what VAT is all about

VAT in Middle East

Not sure what VAT is or how it affects you? Check out the Q&As below for the headlines on this new tax.

1. What is VAT?

Value Added Tax (‘VAT’) is a consumption tax that is applied to customers at points of sale. VAT is currently charged in the UAE and KSA and will apply in Bahrain starting 1st January, 2019.

2. How much will VAT cost me?

VAT will be applied at a rate of 5% of the value of your purchase. For example, if an item costs BD 10 before VAT, it will now cost BD 10.5. Similarly, if an item costs AED 100 / SAR 100, it will be charged at AED 105 / SAR 105.

3. Is everything I buy liable for VAT?

Certain items, such as some medicines, will be exempt, and you will not be charged VAT on these items. This will be shown on your receipt.

4. What happens to the VAT that is collected?

VAT is a tax applied by governments, and all companies – including Alshaya – must apply it to the goods they sell. We collect the VAT charge and pass it to the relevant government.

5. What do I have to do?

Nothing. VAT is automatically added to the price of goods and reflected on your till slip. The price you see is the price you pay.

6. Who can I talk to for more information?

If you need clarification on our receipt you can call the Alshaya Contact Centre. You can also visit the relevant government websites from the links on the right.