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Taxes and contracts: why VAT is going to change everything

Why almost every contract you hold - from auto insurance to phone data - will be even more important

Gulf News

Here in the UAE, we have a comfortable history of (legally) not paying taxes. We all know that will official end on January 1, 2018 with the introduction of the value-add tax (VAT). Sure, we’re already paying taxes on sugary drinks and tobacco, but those are things you can do without. But car insurance, mobile phone service, and cleaning contracts… these are things essential to modern living.

And they all requires contracts, so unless you’re lucky enough to have only have contracts that run from January 1 to December 31, you’re going to have contracts that run across MULTIPLE TAX YEARS. That could have an impact on your bills, especially if you paid them early.

We knows it sounds complicated. Speaking to tax experts gave Ed a headache. But knowing how to deal with contracts from both a consumer and business standpoint is now going to be critical knowledge for everyone.

So listen to this episode, because we talk what services will be taxed, what companies are doing about and even about the legalese that will soon be a part of everyone’s life.

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