All goods and services, including electronic services, that are bought online are subject to 5 per cent Value Added Tax if the delivery address is in the UAE or if the products are used locally, the Federal Tax Authority (FTA) said on Wednesday.
The FTA provided updated guidance making clear that all "electronic services supplies", including items such as e-books, music, magazines, games, movies and other services delivered digitally are subject to the tax if they are delivered to local accounts or consumed locally.
“In light of the increasing importance of the e-commerce sector, clear mechanisms for procedures have been identified,” FTA director general Khalid Al Bustani said in a statement.
“Value Added Tax, as it relates to the supply of goods and services through electronic means, contributes to supporting the activities of this vital sector … which depends on a locally developed digital and technological infrastructure,” he added.
Other services subject to VAT include the purchase of domain names, website advertising, distance learning courses or live-streamed broadcasts of a range of content including sports, entertainment, cultural, political, artistic and scientific events, the FTA said. This applies to services delivered through websites, mobile apps and other digital platforms.
The UAE is one of the most advanced e-commerce markets in the region. E-commerce revenue is projected to reach $5.7 billion (Dh20.9bn) this year and grow at a compound annual rate of 14.3 per cent to $9.8bn by 2024, according to Statista.
The FTA is keen to apply international best practice when applying VAT, Mr Al Bustani said, adding that the UAE is one of the fastest growing e-commerce markets in the region, “enhanced by the availability of an advanced digital infrastructure and a growth-friendly legislative environment”.
The FTA said that its new guide, which is available on its website, clarifies whether companies or individuals delivering services need to register for VAT or not, and whether such registration is compulsory or voluntary. It also deals with issues surrounding residency and the allowance of taxable expenses.
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Killing of Qassem Suleimani
Killing of Qassem Suleimani
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
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Teachers' pay - what you need to know
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
