VAT
So just interested to see if the VAT was implemented and if people have noticed the effects ?
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Re: VAT
Yes it was implemented.... have paid a grand total of 4.25 AED so far.... massive effects!
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Re: VAT
AED 7.20 in Choithrams yesterday.
Fortunately, they were really organised and by 2pm when I went down there they'd managed to simply remove prices from everything and not put the new ones up. |
Re: VAT
Originally Posted by UKCityGent
(Post 12408810)
So just interested to see if the VAT was implemented and if people have noticed the effects ?
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Re: VAT
Noticed quite a few increases in the 10 - 20% range at the supermarket.
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Re: VAT
Manager of the local pub said they're trying to keep it to 5% on basic prices, but it's more complicated because they can't charge 5% more straight off the bat because prices include tax and service etc.
So have to remove that, add 5%, add those back on but they're then charging service on the VAT so they have to add the service to the VAT free price at the same time as adding VAT. Or something. Then he suggested that actual rates for them are going up thanks to VAT so they might need to increase their prices again when the dust settles. From what I see, if a business has VAT applied to the goods they sell then it's easily transferable, then the 5% added to their rates (DEWA etc), to some services they use that they can't pass on means that some of those 5%'s need to be built into their prices, so in 'real' terms the rate applied to the product at shop floor could be higher than 5% or lower. Which makes it a total minefield for the first few months. If I were a business I'd be doing everything I can to swallow some of that cost as a possible differentiation from the competish. Difficult though, this part of the world means it's like to end up with most places plumping them 10% up and us having to swallow it. Bit like when rent increases and general cost of living, can't see many firms just chucking an extra 5% at staff for fun. |
Re: VAT
Originally Posted by Scamp
(Post 12409661)
Manager of the local pub said they're trying to keep it to 5% on basic prices, but it's more complicated because they can't charge 5% more straight off the bat because prices include tax and service etc.
So have to remove that, add 5%, add those back on but they're then charging service on the VAT so they have to add the service to the VAT free price at the same time as adding VAT. Or something. Then he suggested that actual rates for them are going up thanks to VAT so they might need to increase their prices again when the dust settles. From what I see, if a business has VAT applied to the goods they sell then it's easily transferable, then the 5% added to their rates (DEWA etc), to some services they use that they can't pass on means that some of those 5%'s need to be built into their prices, so in 'real' terms the rate applied to the product at shop floor could be higher than 5% or lower. Which makes it a total minefield for the first few months. If I were a business I'd be doing everything I can to swallow some of that cost as a possible differentiation from the competish. Difficult though, this part of the world means it's like to end up with most places plumping them 10% up and us having to swallow it. Bit like when rent increases and general cost of living, can't see many firms just chucking an extra 5% at staff for fun. |
Re: VAT
Originally Posted by TheShed
(Post 12409693)
if we lived in a developed country, it would be a straight 5% on the price as all of their other costs should be VAT reclaimable. However, I very much doubt people here get that and even if they do, they'll ignore it and pocket the difference.
I read an article said the true cost to Joe Average is 3.1-3.6% increase in living cost. |
Re: VAT
Biggest mess in our line of business, I've ever seen. It's like whole system was designed by 10 years old. I am in Maritime business and most of the things supplied to ships should be zero rated. Our incompetent finance manager doesn't help situation either.
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Re: VAT
Not totally related but in Saudi they not only introduced the VAT, but also raised the price of 91 by 80%, and doubled the price of 95. Be interesting to see what happens to the prices of taxis, Uber, Careem etc
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Re: VAT
Does this mean there is a VAT claim office at Dubai then ?
I would want my VAT back if I visited Dubai |
Re: VAT
Originally Posted by UKCityGent
(Post 12410594)
Does this mean there is a VAT claim office at Dubai then ?
I would want my VAT back if I visited Dubai You cant make this 54iT up :rofl::rofl::rofl::rofl: |
Re: VAT
Yes. Supplier quoted me basic price and then a separate add-on for VAT.
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Re: VAT
Zataar have put delivery charge up by 20%. The b....rs
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Re: VAT
Originally Posted by Scamp
(Post 12410675)
Zataar have put delivery charge up by 20%. The b....rs
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