- Dining out with family and friends is set to become more expensive from next week due to the implementation of VAT in UAE
- As part of the GCC agreement, UAE will impose 5% VAT on dining out from January 1, 2018
- The new tax will be imposed on dining out on all kinds of eateries including fast food outlets, Asian, Continental, Arabic, Chinese, and other restaurants
- According to KPMG’s recent report, UAE residents spend on average between AED50 and AED150 per person on dining out
- Value Added Tax (VAT) is a general consumption tax that is added to products and services at every stage of its production, which differs in value from country to country
- VAT of 5% will be introduced on goods and services across UAE from 1st January 2018
- With the introduction of VAT, the cost of property and health insurance premiums may go up by 5% in UAE, the largest insurance market in GCC
- VAT is designed to tax only the value added by a business on top of the services and goods it can purchase from the market
- VAT will be implemented across all GCC countries by 1st January 2019
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