UAE Federal Tax Authority: VAT Must Be Part of the Final Price

The Federal Tax Authority (FTA) explained that the final reduced prices for goods on promotional offers must include the 5% Value Added Tax (VAT), which is to be calculated as included in the new price after reductions by the sales outlets or service providers themselves.

In a new awareness message issued today targeting consumers and service recipients in the UAE, the FTA said that in cases of discounts on regular sale prices, or during seasonal discounts and “buy one get one free” promotions, VAT must be included in the final amount to be paid after deduction includes VAT as per the reduced amount.