VAT Tax inclusive prices

VAT Registered Businesses must display VAT inclusive prices to avoid penalties

The FTA has announced that all businesses subject to VAT and Excise Tax must display prices of goods and services inclusive of tax in order to avoid administrative penalties. The FTA called on consumers and service recipients in the UAE to exercise their rights and make sure that the prices displayed on items or services they buy display the total amount of tax charged.

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 to be paid and the amount of tax charged.

The FTA has emphasized that displaying product prices without including the amount of tax charged is considered a violation. The practice misleads consumers who will end up paying more than the amount they expected when deciding to make the purchase.

The authority urged businesses registered for VAT and Excise Tax purposes to fully comply with tax laws in order to avoid administrative penalties, noting that not displaying tax-inclusive prices carries a 15,000 Dirhams fine for each tax not displayed.

FTA pointed out that the success of the UAE tax system is a joint responsibility that requires constructive strategic cooperation among three main pillars: the government, businesses, and the community.