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 point of sale. VAT will apply in the UAE and KSA from 1st January 2018.

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 cost AED 100 before VAT, it will now cost AED 105. You will be able to see the VAT charge on your till slip.

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. When does VAT apply?

VAT will be charged for all eligible items sold from 1 January 2018.

5. 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.

6. What do I have to do?

Nothing. From 1 January, VAT is automatically added to the price of goods and reflected on your till slip. The price you see is the price you pay.

7. Who can I talk to for more information?

If you want a 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.