As we know the UAE will be levying a 5% VAT from 1st January 2018. VAT will provide the UAE with a new source of revenue, that will be utilised to continually provide high-quality public services. It will also help the Government move towards its vision of reducing dependence on oil and other hydrocarbons.
VAT will apply to the majority of transactions in goods and services, but a limited number of exemptions may be granted. As a result, the cost of living is likely to increase slightly, but this will vary depending on an individual’s lifestyle and spending behaviour.
— Mutaz Albadri, Mojo PR