Prices drop further in Dubai’s VAT-free week
CAR DEALERSHIPS HAVE ALREADY INTRODUCED OFFERS
More retailers in Dubai are launching “VATfree” special offers as part of Dubai Summer Surprises to get prospective buyers to make those purchases now rather than take longer to decide.
It’s the first time that a VATfocused campaign has been initiated on this scale, with the offers running for a week to August 13. Leading car dealerships have already introduced these plans, along with the other incentives, such as extended warranty, free insurance, and increased limits on free servicing.
“Especially in high-value purchases such as a car, removing the VAT element of 5 per cent could be decisive,” said the general manager at a local dealer. “Rather than saying a ‘5 per cent discount’, saying all deals during DSS are VAT-free carries more significance. It removes a mental block many buyers may have.”
New car sales in the UAE are down more than 25 per cent year-to-date, based on industry sources. The special offers during the Ramadan phase did not generate the traditional sales boost, and dealers are placing a lot of expectations on trying to make up during DSS. They will need to before the next model year models start coming into showrooms.
Available online
Dubai retailers are escalating the VAT theme further. The Dubai Summer Surprises campaign, ‘24/7 VAT Free Week’, has seen leading retailers joining in. Running from August 7 to 13, it is also available on retailers’ online portals too.
The Apparel Group is padding up the VAT-free campaign with value-added offers. Its Club Apparel loyalty programme members can pick up points when they spend Dh200 in participating stores. The same points can be raised on its 6thStreet.com online shopping portal as well.