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2 months into VAT living, has it affected you? How much longer do you see yourself staying in Dubai?

Just interested to hear some opinions. Definitely makes a difference!

| Modified: February 28, 2018 | Author:

49 Comments

6sketchyinternetguy9 1 year ago

VAT didn't affect me at all. I got used to it. Also, if anyone is living in the UAE solely for no tax, then they're sad people.

varunasingh 1 year ago

I have an annoying number of 25 fills now

cyberkada 1 year ago

official

wazaaaaaaa 1 year ago

would be interesting to see official inflation numbers for UAE for this year (hell, even for 2017)...

DoctorGorb 1 year ago

You are only able to save 100 usd or aed a month? Either way I am curious how you make it by at all with such razor thin margins on life...

Mudzimansour 1 year ago

I'm leaving by the end of this year's August. Dad had to close one of his shops to ease up on his funds, but that didn't seem to help. I'm finishing up my final years in AUD while my little bro and sis are studying in school. We're struggling, but trying our best to save up until the end of this year. It's been hard on us to get through this year ever since January, but we kept on praying for greater good. No negatives, just positives and all that and try and avoid fines while driving.

rizuj66 1 year ago

With VAT added to tourism etc fees, total of 25% added to the cost of a hotel restaurant meal. One quarter extra!!

plan_with_stan 1 year ago

Vat?

perplexedm 1 year ago

5% increase in VAT have a compounded effect on pricing of finished products. So, end result will be a huge change in price of goods. Some regular use products in malls, etc. have raised their prices >20%

fourfiftyms 1 year ago

10% Tax, 10% municiplaity fee, 5% VAT, DIFC is great now :) Plus the already higher cost for a nicer part of town. Who doesn't love spending 15 on a bottle of Peroni :)))))))))))

d1andonly 1 year ago

It is a sinister plot of the higher ups to coerce the populace to lead a healthier lifestyle.

horillagormone 1 year ago

More than the VAT, it's all the other price hikes that are causing more problems, such as the renewal of vehicle registration. The only real way VAT had a bigger impact on me was the university tuition fees.

The_Valiant_Seahorse 1 year ago

Hate to tell you bars aren't empty mate. People drinking out as much as ever. Less brunch crowds though I've found.

The_Valiant_Seahorse 1 year ago

Absolutely agree with this - everyone from Caribou to Taza Fresh took the opportunity to use it as a price increase window. What I do hope is that if they try to increase prices again in the near future, the market is too competitive and people are too stretched to allow it and will speak with their wallets.

The_Valiant_Seahorse 1 year ago

Honestly hasn't moved the needle for me; most annoying when billed VAT at hotels, the DIFC and bars though since taxes are already a headache there. But day to day? I've never been a mad spender so I've not really had to cut down on much.

babayega812 1 year ago

...what..?

hasanzakariyya 1 year ago

I totally agree 5% vat is ok but I bought mobile online from Letstango price is good for other if you want to purchase any item from online so I recommended you this website.

toophan 1 year ago

Holy moly! you save 40% of your salary?! That's amazing!

Delta4 1 year ago

Not going out much. Not buying much stuff online. Less than 6 months

Hxn1234 1 year ago

mr. azab dalla, what kind of business do you run.

salluks 1 year ago

They see Jumeirah where 250k rent goes down to 240k and conclude the rents are going down.

APsauce 1 year ago

It's coming, just depends when the expo is over.

APsauce 1 year ago

https://i.imgur.com/uDNqsKs.gif

Razzler1973 1 year ago

The odd thing about VAT is that nowhere in this city has anyone had any qualms about hiking prices of things up. Now it has a name though. It's one thing if prices have been reasonably steady and then VAT comes in but we're used to prices going up once or twice a year. It does feel like a mad cash grab a bit though

hybroid 1 year ago

Attrition rates may rise slightly but there will always be more demand to move in to the country than leave so the status quo remains pretty constant. Prices and taxes may continue to rise but people will still come and stay.

batdxb 1 year ago

that's a good company. keep it.

minyoooongi 1 year ago

I remember ordering my regular KFC meal online which I ordered almost 3-4 times a week. Pre-vat total : 31dhs Post-vat total : 39dhs I dont think thats a 5% increase if my math is correct.

azabdalla 1 year ago

Like other people said, not much has changed with VAT, its the other costs. As a business owner who pays for health insurance, rents, and the daily bits including school fees for a family of 3 - I see it getting tighter and tighter, eating out from 4/5 times a week have changed to 3. Evan social outings for guy nights have come down to once a week. I guess everyone is trying to squeeze in, how long who knows. Maybe a good time to draw up a plan B. At some point I feel maybe I should go back to employment for a better nights sleep atleast then housing and health and maybe education to an extent is taken care off.

wonderfulpretender 1 year ago

Well, I used to occasionally splurge on food and drink. Now, it is extremely minimal. Many more home-cooked meals!

hummusporotta 1 year ago

stopped smoking after excise, stopped eating out and drinking after VAT. my habbiness now knows no bounds

pakrab12 1 year ago

no affect. I am very habby

whatnadineloves 1 year ago

After living here for over one year and being able to count on one hand how many times I have cooked myself, I am now preparing 95% of my meals. I am also thinking a lot more before spending money and friends and family bring things with them when they come and visit me. I am in a lucky position where my employer provides me accommodation and pays all bills for it, and also I have a driver from and to work so the petrol increase doesn't affect me as I don't own a car and only take a few taxi rides here and then. My mobile phone bill had been already very high, so the 5% increase isn't so shocking. Financially I am not really much better off here if you consider all aspects: e.g expensive flights to Europe to see family and friends (only one a year is covered by my employer), higher living costs, the quality of healthcare and so on. I was on a similar salary before, however, I enjoy the weather here and sun all year around really helped with a medical condition I have. I never came with the intention to stay here forever, I planned 2-3 years, but only recently changed jobs and signed a new contract and I will stay as long I enjoy my job. If a personal income tax was to be introduced, it would depend on my position as we agreed on a net salary and if my employer would therefore cover it.

RayieDubai 1 year ago

Yes, of course, VAT is affecting us. In normal routine grocery, we don't feel the much difference. But if we are buying stuff like gold, furniture then it has a lot impact on our bill :S..

hatedpeoplesinceday1 1 year ago

VAT had little to no effect on me. What's alarming is the House Rents. I mean, really, the prices are ridiculous especially the central areas (Deira, Bur Dubai, Karama, Intl City, etc). Even the old buildings are expensive and I don't know where do these News outlets take these data that the rent prices are "decreasing". My guess is from those high-end places or real estate for the upper class.

cyberkada 1 year ago

Malls and food courts are more empty now. Im sure most people are spending less as they are now a lot more conscious of it. NOT GOOD for retail. Not buying stuff online anymore and sending it here as the 5% that online retailers outside the UAE do not collect is a pain to have to pay the courier here upon arrival.

caedriel 1 year ago

I used to save about 100 bucks a month now I dont . Not much one can do . Vat has pretty much only affected people earning low to middle income salaries.

sghazanfarali 1 year ago

Like others have mentioned here, VAT had no effect, but the price increase due to VAT had an awful impact.

fjfududururhdjis 1 year ago

My company increased salary 5% for everyone. As long as I can manage to save at least 40% of my current salary, I will stay.

TurboShawarma 1 year ago

It's all about that threshold where it balances off, home or other country vs here, some people have higher threshold, some lower. I have noticed a lot of oil and gas people with crazy benefits sending families back home, even with school and apartments paid these guys are used to saving so much money that now they are willing to live alone here to not sacrifice this. So, it's not even directly about salaries...it's about how you perceive what's worth and what's not.

JCdentonManderley 1 year ago

It's only a matter of time..... people will reevaluate what it means to make more money but not have enough savings due to cost of living going up.

LoveisLife125 1 year ago

Even with VAT, I am still economically and socially better off in the GCC then I would be at home. That being said, summers are rather warm here!

TurboShawarma 1 year ago

Not VAT directly but as a reason for everyone to hike prices, and it does affect me of course. Fuel is also more expensive, food has gone up, basically all prices are constantly moving upwards. Taxi prices also went up last year in AD, every government service and fee went up, they added 3% fee for rents...it never ends. I go out less, and friends are now more in to stay at home drinking evenings rather than spending fortune on drinks in bars. And complaints from couple of bar managers I know tells me we are not the only ones doing this now, bars are empty. I still save money, but the threshold of "it's not worth it anymore" is becoming closer and closer. And it is not just a number I save here vs back home, there are a lot of things I sacrifice for these savings here, I left my life back home, life long friends, family, way of life...so only thing that keeps me here is much bigger savings, nothing else.

AkaClarky 1 year ago

VAT has had a negligible affect on me personally. Was frustrating the first couple of weeks with everyone over charging though. I will stay in Dubai until income tax comes into effect (if ever).

TenFoldMassacre 1 year ago

We've cut back a little on alcohol That's a really hard hit.

pinkyponk 1 year ago

Spending so far has been the same or less as last year. We've cut back a little on alcohol and eating out though.

burksterdxb 1 year ago

People should start complaining to the authorities, only then will they take note of it. Complaining on the newspaper or Reddit won't help in anyway.

WorthLavishness 1 year ago

VAT itself didn't affect me that much, what got me more was the price hike that several shops took advantage of with the excuse of VAT. 5% is nothing, but if you look closer the price hike in some cases was more than double the cost of VAT. And we are talking about big and small shops. Anyway, yesterday I read that at least 15 shops were found guilty of price hiking in Abu Dhabi, so maybe someone is paying attention after all, maybe just not enough people to overview everything. But that's not really a VAT related issue.

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