Businesses must display prices inclusive of VAT
(3/14/2018 5:46:00 AM)
The UAE’s Federal Tax Authority (FTA) said all businesses subject to Value-Added Tax (VAT) and excise tax must display prices of their goods and services inclusive of tax in order to avoid penalties.
The Authority in a statement on Tuesday urged customers to be aware of their rights, saying that prices displayed on items should be inclusive of taxes.
Not displaying tax-inclusive prices carries a Dh15,000 fine for each tax, FTA said.
The displayed price should be the total amount that consumers will pay upon receiving the tax invoice, which should include the full price, followed by the total price and the amount of tax charged therein.
The FTA added that displaying prices without including the amount of tax charged is considered a violation, saying that it is a practice that misleads consumers.
The Authority also urged businesses registered for VAT and excise tax to fully comply with tax laws to avoid administrative penalties. The UAE rolled out VAT starting January 1, 2018 at a 5 per cent rate. Excise tax was implemented from October 1, 2017, and is at a rate of 50 per cent on carbonated drinks, and 100 per cent on both tobacco products and energy drinks.