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Is Apple Tax Free in Dubai?

Published in UAE Tax Policy 2 mins read

No, Apple products purchased in Dubai are not tax-free. Purchases made from Apple in the UAE, including Dubai, are subject to Value Added Tax (VAT).

Understanding VAT on Apple Purchases in the UAE

When you purchase Apple products, whether online or from a physical Apple Store in the United Arab Emirates (UAE), a standard VAT rate is applied to your transaction. This means the final price you pay will include the applicable tax.

  • Applicable Tax Rate: All orders placed in the UAE are subject to a VAT rate of 5 per cent.

What is Value Added Tax (VAT)?

Value Added Tax (VAT) is a consumption tax levied on goods and services at each stage of the supply chain, from production to the point of sale. While businesses collect VAT, it is ultimately borne by the end consumer. The UAE introduced VAT in 2018 as part of its efforts to diversify government revenues.

Key Aspects of VAT on Apple Products in Dubai

  • Transparency: The listed prices for Apple products typically do not include VAT until checkout, where the applicable tax is added to the total.
  • Uniformity: The 5% VAT rate is standard across the UAE for most goods and services, including electronics like those sold by Apple.
  • Compliance: Apple, like all businesses operating in the UAE, is required to collect and remit VAT to the Federal Tax Authority (FTA).

Here's a quick summary:

Region Tax Type Current Rate
UAE VAT 5%

Therefore, while Dubai is often perceived as a low-tax environment, the purchase of goods like Apple products is subject to the standard VAT rate.