The remaining 30 per cent would go into the federal budget, Sheikh Mohammed said.

Chairing the cabinet meeting on Sunday, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, approved the distribution of revenue from value-added tax (VAT) and said local government would receive 70 per cent of the revenue.

This would be used to improve local services, community development, and wider support of UAE residents.

The remaining 30 per cent would go into the federal budget, Sheikh Mohammed said.

The Dubai Ruler also announced the appointment of the administrative board of the Federal Authority for Nuclear Regulation (FANR).

He said on his Twitter account that the UAE is proud to be the first Arab country to produce energy from nuclear reactors, adding that the first reactor will get into service in 2018.

“Our target is to establish many great developing and services projects for our citizens, and the government would be transparent about the nature of those projects, and will strictly monitor the markets to prevent raising the prices, and it will keep consulting the people to improve all what provides them and their families with good living.”

Source:www.khaleejtimes.com/business/vat-in-uae/70-of-uaes-vat-revenue-to-be-used-by-local-governments

For data packages, any plan taken in 2017 and spilling over into 2018 will be subject to VAT

Here’s a rundown of what you need to know about VAT – from what products and services are subject to it to knowing whether companies are trying to pull a fast one on you

If and only if

Businesses are not allowed to charge VAT unless they are registered with the Federal Tax Authority and have a tax registration number (TRN)

Full details

Details of VAT should be displayed on the tax invoice issued to customers, which should include the total amount and tax being charged, plus the TRN

Loose change

In cases exact change cannot be given, rounding off can be applied; for example, 13 fils can be rounded off to 25 fils, 39 fils to 50 fils and 69 fils to 75 fils

Enjoy for a little more

Leisure and entertainment services – including theme parks, cinema tickets, concerts and restaurants – are subject to VAT

Save on Salik by.

.buying cards online – it won’t cost you anything extra. Salik cards are subject to VAT when bought in stores

Health benefits

Consultancy and medicines are zero-rated for preventive- and treatment-related services

Learn it

VAT will directly hit universities, unless it is 50% funded by a government grant. The only exception is the rent in student accommodation

Thanks, jewellers

VAT is implemented on investment gold, silver and platinum jewellery with 99% purity. For consumers, the tax is applicable on the entire piece rather than on making charges. However, some companies are happy to absorb the VAT cost, mostly on diamonds

Your call

There are no extra charges on recharge cards. For data packages, any plan taken in 2017 and spilling over into 2018 will be subject to VAT

Got beef?

The public is encouraged to report any complaint via the Ministry of Economy’s call centre on 600522225, which works from 7am to 10:30pm.