Commuters in UAE will not be affected by 5% value-added tax (VAT) implementation on January 1, 2018, reported Khaleej Times, December 27.
The service of Careem and Uber that are used as a taxi for public transport would not be charged with VAT as well, said Dilip Jain, VAT lead of Institute of Chartered Accountants of India (ICAI) VAT Faculty.
However, when the transportation is used for any other ways of entertainment such as for sightseeing or for catering services, VAT will be imposed.
It will be the first time of UAE to implement VAT on goods and services next year, and its standard rate is considered as one of the lowest in the world.
