School Uniform Prices Set To Rise With VAT

In less than a week, Value Added Tax (VAT) will be levied in the UAE and while education is mostly exempt form tax, school uniforms are not.

Aside school uniforms, stationery, school cafeteria food and vending machine products, electronic equipment and extracurricular field trips not directly related to the curriculum will be taxed at 5%.

Read More: No VAT On UAE School Bus Fees

According to the report in The National, a school uniforms costs an average of AED 750 to AED 1,200 annually per student, depending on the type of school. This makes it one of the biggest taxable education-related purchases for parents.

Sholeh Mahdabi, owner of one of the oldest school uniform shops in Dubai, Stitches, said: “What can we do? We have to add it to the price. Everything that we are going to buy, it is going to be more expensive now, from materials to Dubai Electricity and Water Authority bills.”

VAT is expected to increase consumer prices by about 1.4%, the UAE’s Federal National Council heard this week.