VAT affected me in a positive manner. Since Jan 1, I stopped buying unwanted things and become very careful in spending even a single dirham. Really it was an eye opener on how much money I used to spend on unwanted stuff earlier, now I am saving money because of the VAT effect. - Johncy Joe
I have lived in Dubai earlier from 1992 to 2001. Then again from 2008 to 2009. We just came back in 2016 and I can say that UAE is a lovely, safe and comfortable country to live in. The 5% VAT is nothing in comparison to the provisions we get here. The clean and safe environment and infrastructure. - Andrea Madan
I can’t really say that VAT has had a great effect on our family’s expenses cause shopping for the fundamentals is obligatory and we have to adjust to living with these new prices. One thing it has affected is that my purchase for candy has distinctly diminished which is really saddening. - Sarah Ronad
On the personal front, being in IT we had to spend the entire month working to make the program changes in IT systems. The entire New Year went in VAT implementation. I never knew the real impact on me as I was inside the computer centre only. But the real shock came when I came to have a breakfast with tea. The impact was 10% as the prices were marginally increased and on top of that 5% VAT and on top of that no change was given back to me.
Most of the workers work here in the hope of saving and sending money to their loved ones in their home country. The VAT impacts the savings by 10% and also the remittances are impacted. Also the business have subtly increased the prices marginally by 5 or 10 fils which goes unnoticed by the buyers.
Moreover the philanthropy work where our group used to help – the old age home and an orphanage – has resulted in a reduction of contributions whereas their costs have increased due to VAT. - Kovid Ranjan
After 13 days of VAT being implemented, I would honestly say ‘Not much’...One or two restaurants might have used it as a reason to first raise their rates, and then add VAT to the rates, but then, there’re always so many other options in Dubai if one wants to get food cheaper. Grocery stores and all, so far so good..I think at present, people are still adjusting their payment systems to include VAT. For e.g. a stationary guy took half an hour to enter two notebooks and two or three knick-knacks, since each item had not yet been entered in the VAT-modified software.
Looking at it positively, firstly, the money is going to the ever-ongoing improvement of the city, which is good. Secondly, if one’s monthly expenses on grocery , entertainment, et al are, say AED 10,000(Which is quite lavish, for most people) for e.g. then, the add-on cost is AED 500, give or take a few price rises further. Or, for a AED 5000 spend, the VAT would be AED 250.
Compared to India, for e.g. where price rises hit people everyday, this is pretty much acceptable . Or, it should be. But then, we’ve been spoiled here, right, with prices remaining same for so many years, and going up only in the last few months. So, a bit of cribbing is in order, for those who want to spend some gossip time on VAT discussions. (Not that they can do anything about it..heh heh). - Amit Loiwal
Surprisingly VAT hasn’t affected me in any way. Giving a dirham, or sometimes fils doesn’t make any difference. I have seen many people moan about VAT. When United Arab Emirates has done so much for us, why do we moan about VAT? According to me, VAT is nothing. - Hanan Fathima
VAT has not changed anything in our standard of living and doesn’t have any impact. Slight increase in price of goods and services is visible but it seems to be negligible. Last week I had done car wash and bought few candies and had to pay slight increase in the price. After all its need of the hour and it will boost the economy to the country. As an expatriate we all are bound to contribute for the economy. - Eappen Elias
The actual issue is when you go to the store with exact change to pick one or two general items that you normally buy and realise that you are short of money. VAT is still in the process of settling into the consumers’ heads that way. Another problem that is quite common while making cash payments is the rounding off of 0.05 or 10 fils. Many of us are used to carrying a light wallet with very little or no coins at all. The impact, I feel, would comparatively be less if the revised prices inclusive of VAT are listed. - Aishwarya Chandrasekhar
Even though VAT slightly increases the expenses for grocery, entertainment, utilities. It will help the government to mop up resources for additional spending in building more infrastructure and passing the benefit to the public. - Adil Rahman
Living in a land which was famous and enviable as a “Tax Free haven”, until now; ”Mindset “was the first upset with VAT trailing as a distinct entry on most purchase receipts. News regarding introduction of VAT had come in print media 2 years ago. The mind had got a mild jolt then, but postponed the “acceptance of The Reality” for a later date. And here it is now...right in front of our eyes, passed on in our hands everyday, to be borne by the same pocket.
Having been brought into force only since January 2018, the full impact of it hasn’t been felt yet. The rising costs haven’t altered my standard of living yet. But, even before the pocket feels the burn, the mind keeps going back in time, which is just a few days ago, when I paid less for the same commodity.
For now, the regular assurance/consolation by the Revenue ministry that the new Villain will not impact the cost of living all that much; that it is only 5% as against the double digit figures elsewhere in the world; that the “mind” will acclimatize to the New State of Being, if not immediately, eventually, keeps me going!!! 2018, still remains, A Happy New Year!!! - Jayashree Mehta
VAT has actually not affected us a lot. Vat is less in UAE compared to other countries. Also, VAT is not implemented on important things like school fees, medicine, etc. So, therefore I think VAT has not actually affected a lot in the life of average people. - Karishma.M
Value added tax has obviously added a lot of value to my job and salary. It has curbed over spending on many avoidable things like entertainment, restaurant food and branded stuff. It has not affected my budget much as education and healthcare and housing sectors are currently exempted categories. - Vineetha S.
