Dubai: A statement from the UAE’s Federal Tax Authority (FTA) on Sunday announced that the final reduced prices for goods on promotional offer must include the five per cent Value Added Tax (VAT).

The five per cent tax is to be calculated and included in the new price, after reductions, by the sales outlets or service providers themselves.

The FTA said that VAT must be included in the final amount to be paid after deduction, calculating the VAT based on the reduced amount.