Bloglogo
The effects of VAT on car sales in the UAE
Car News

The effects of VAT on car sales in the UAE

·
October 25,2017
·
2 min read

Tags:

اقرأ المقال بالعربية

Lamborghini Showroom Dubai

Value Added Tax (VAT) is set to make its GCC debut on 1st January 2018, and while it is estimated to generate over AED 12,000,000,000 in the first year, the UAE’s auto sector stands prepared, yet cautious. With the current challenge of excess inventory, stakeholders believe the final legislative framework will allow for greater clarity on local and imported vehicles.

You might also be interested in3 of the best luxury crossovers on sale in the UAE

Set at a value of five percent, both long and short-term effects of VAT are likely to be seen and felt by those operating in the automotive industry. While prices will be affected in the long term, as VAT is payable on new car sales, the short term could see a spike in sales as buyers prepone vehicle purchases to avoid paying the additional tax.

Toyota Showroom Dubai

With dealers and distributors focusing on reducing inventories of 2017 models, there is likely to be an influx of pre-owned cars, with buyers opting for a well maintained or certified pre-owned vehicle over a new car, following the introduction of VAT.

You might also be interested in2017 Lexus RX vs 2017 Mercedes Benz GLE Comparison

Although it is not entirely known whether the VAT will be calculated on the RSP (recommended selling price), the showroom sticker price, or the final invoice price, authorities could be leaning towards the RSP as that is how it is tackled in other markets such as the United Kingdom and the United States of America.

Editor's Pick:

Dubai Police begins issuing fines for praying on the side of the road

Rolls Royce Dawn Black Badge unveiled in UAE

Also See:

Volvo Polestar 1 set to become a Tesla killer

Audi S3 2017 Review

Got a comment? Post it below:


Do you want to sell your car for FREE?
We have everything that makes it easier for you to sell your car on our platform quickly
Sell your car 100% absolutely free on YallaMotor.
200+ Cars Sold Everyday.
115,000+ Satisfied Sellers.
500,000+ Monthly Buyers.
POPULAR TAGS

FROM THIS WEEK
Comprehensive Guide to Renew Your Driving License in Dubai
28 March 2024
|
Road Regulations
Infiniti QX80 2025: A Peek into the Future of Luxury SUVs
25 March 2024
|
New Launches
How to Sell Your Old Car Online in Dubai?
23 March 2024
|
Yallamotor Tips

Search more than 32,311 used cars in the UAE
Select Make
Select Model
Select Year

LOOKING FOR USED CARS INSTEAD?

OTHER USED CARS IN UAE