Buy your car before the end of year
#1
Buy your car before the end of year
VAT is coming in before christmas.
Will this drive some expats away? living costs are already crazy.
Will this drive some expats away? living costs are already crazy.
#4
Re: Buy your car before the end of year
[QUOTE=Slingshot;6319449].
Will this drive some expats away?
Not much of a new car if it doesn't ...........................
sorry!
Will this drive some expats away?
Not much of a new car if it doesn't ...........................
sorry!
#6
Re: Buy your car before the end of year
[QUOTE=Slingshot;6319634]
I think the biggest effect may be on business that suddenly need to keep "proper" auditible accounts to detail their VAT and make payment on such VAT...
Currently there is no such requirement for accounts...
It will be a mess. 100% mess....
Most everyone will just carry on and grumble - business will suffer...
Currently there is no such requirement for accounts...
It will be a mess. 100% mess....
Most everyone will just carry on and grumble - business will suffer...
#7
Soupy twist
Joined: Dec 2004
Posts: 2,271
Re: Buy your car before the end of year
I did read somewhere - possibly Gulf News - that VAT would be offset by the abolition of import duty.
Anyone believe that?
Even if it happens, I imagine that suppliers won't first reduce their prices to reflect the lower cost of importing their goods before adding the VAT, they'll just whack the VAT onto whatever the current price is.
I had a long chat with the CEO of my company the other day. It's a major employer in TECOM, and it's one of the few media companies out here to be truly financially solvent, and not relying on the endless deep pockets of its owning sheikh to stay afloat. Anyway, he said that "you just wouldn't believe the problems involved in retaining staff in Dubai [due to the inflation], especially in a knowledge-based company with an international staff who can find jobs in other companies easily".
If VAT really does impact noticeably on the cost of living, I can see that my CEO is going to have even more problems on his hands. As he says, he can't just keep raising salaries and benefits to retain people, because he refuses to run a non-profitable company - and a frightening number of companies in Dubai don't make a penny profit. They're the playthings of billionaire sheikhs, and anywhere else in the world, they just wouldn't be able to exist.
Anyone believe that?
Even if it happens, I imagine that suppliers won't first reduce their prices to reflect the lower cost of importing their goods before adding the VAT, they'll just whack the VAT onto whatever the current price is.
Originally Posted by Autonomy
Most everyone will just carry on and grumble - business will suffer...
If VAT really does impact noticeably on the cost of living, I can see that my CEO is going to have even more problems on his hands. As he says, he can't just keep raising salaries and benefits to retain people, because he refuses to run a non-profitable company - and a frightening number of companies in Dubai don't make a penny profit. They're the playthings of billionaire sheikhs, and anywhere else in the world, they just wouldn't be able to exist.
Last edited by Eeyore; May 7th 2008 at 7:21 pm.
#8
Re: Buy your car before the end of year
I did read somewhere - possibly Gulf News - that VAT would be offset by the abolition of import duty.
Anyone believe that?
Even if it happens, I imagine that suppliers won't first reduce their prices to reflect the lower cost of importing their goods before adding the VAT, they'll just whack the VAT onto whatever the current price is.
Anyone believe that?
Even if it happens, I imagine that suppliers won't first reduce their prices to reflect the lower cost of importing their goods before adding the VAT, they'll just whack the VAT onto whatever the current price is.
#9
Re: Buy your car before the end of year
I had a long chat with the CEO of my company the other day. It's a major employer in TECOM, and it's one of the few media companies out here to be truly financially solvent, and not relying on the endless deep pockets of its owning sheikh to stay afloat. Anyway, he said that "you just wouldn't believe the problems involved in retaining staff in Dubai [due to the inflation], especially in a knowledge-based company with an international staff who can find jobs in other companies easily".
If VAT really does impact noticeably on the cost of living, I can see that my CEO is going to have even more problems on his hands. As he says, he can't just keep raising salaries and benefits to retain people, because he refuses to run a non-profitable company - and a frightening number of companies in Dubai don't make a penny profit. They're the playthings of billionaire sheikhs, and anywhere else in the world, they just wouldn't be able to exist.
How true. I know lots of companies are having to review salaries more often than they would in say the UK. 3 years ago it was because of the rising rents, now inflation. People will probably need to jump ship to gain more money as companies just can't keep up with the rising costs.
Don't get me started on billionaire sheikhs, but then they do pay me a princely sum for my services so long may it continue
#10
Soupy twist
Joined: Dec 2004
Posts: 2,271
Re: Buy your car before the end of year
You have to wonder how long it'll take before the costs of operating a company out of Dubai render it uncompetitive and therefore uneconomic.
#11
Guest
Posts: n/a
Re: Buy your car before the end of year
VAT will be 5% at most, and all the noises have been that it will be - as Eeyore said - offset against the current import duty.
Whether this happens remains to be seen.
Whether this happens remains to be seen.
#12
Re: Buy your car before the end of year
I know a company that shut down their london office, moved everyone here three years ago on the assumption they would make a hugh savings on overheads. How wrong could they be.
#13
Re: Buy your car before the end of year
It was announced on the radio tonight that it would come in at the end of the year. Talks have suggested it will be 5% or 7% but the rate was not discussed.
#14
Joined: Apr 2008
Posts: 872
Re: Buy your car before the end of year
excuse my ignorance, but do you mean a VAT in UAE?
#15
Re: Buy your car before the end of year
I did read somewhere - possibly Gulf News - that VAT would be offset by the abolition of import duty.
Anyone believe that?
Even if it happens, I imagine that suppliers won't first reduce their prices to reflect the lower cost of importing their goods before adding the VAT, they'll just whack the VAT onto whatever the current price is.
I had a long chat with the CEO of my company the other day. It's a major employer in TECOM, and it's one of the few media companies out here to be truly financially solvent, and not relying on the endless deep pockets of its owning sheikh to stay afloat. Anyway, he said that "you just wouldn't believe the problems involved in retaining staff in Dubai [due to the inflation], especially in a knowledge-based company with an international staff who can find jobs in other companies easily".
If VAT really does impact noticeably on the cost of living, I can see that my CEO is going to have even more problems on his hands. As he says, he can't just keep raising salaries and benefits to retain people, because he refuses to run a non-profitable company - and a frightening number of companies in Dubai don't make a penny profit. They're the playthings of billionaire sheikhs, and anywhere else in the world, they just wouldn't be able to exist.
Anyone believe that?
Even if it happens, I imagine that suppliers won't first reduce their prices to reflect the lower cost of importing their goods before adding the VAT, they'll just whack the VAT onto whatever the current price is.
I had a long chat with the CEO of my company the other day. It's a major employer in TECOM, and it's one of the few media companies out here to be truly financially solvent, and not relying on the endless deep pockets of its owning sheikh to stay afloat. Anyway, he said that "you just wouldn't believe the problems involved in retaining staff in Dubai [due to the inflation], especially in a knowledge-based company with an international staff who can find jobs in other companies easily".
If VAT really does impact noticeably on the cost of living, I can see that my CEO is going to have even more problems on his hands. As he says, he can't just keep raising salaries and benefits to retain people, because he refuses to run a non-profitable company - and a frightening number of companies in Dubai don't make a penny profit. They're the playthings of billionaire sheikhs, and anywhere else in the world, they just wouldn't be able to exist.
Especially for anyone thinking about moving out there. Still, its another argument for me to use when negotiating a bigger package out there.