VAT on discounted items: What UAE tax authority says

VAT on discounted items: What UAE tax authority says

  DUBAI - So what is the rule on Value Added Tax (VAT) for goods on promotional offer or discounted prices? The UAE's Federal Tax Authority (FTA) on Sunday announced that final reduced prices must include the 5 percent VAT. The FTA said retailers or service providers must calculate VAT based on the reduced amount or discounted price. So, for example, if the price of an item is Dh100 and a 50 percent discount applies, it means that VAT will be calculated on the discounted price of Dh50. DAJ/Expat Media

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