Rush for uniforms before VAT kicks in

DUBAI — UAE parents are buying school uniforms for their children even as there are many months to go for the new academic year to begin. They are doing this to save up on the 5 per cent value-added tax that would be applicable to some school essentials from January 1, 2018.

Some uniform stores in the UAE are reporting an increase in sales ahead of the 5 per cent VAT that will be implemented on uniforms for private schools.

The admin at the uniform store Stitches, Marie Argent, said that they have been seeing more customers recently, which she said is ‘unusual’ for this time of the year.

Several parents also told Khaleej Times that they were stocking up on uniforms before the tax takes effect. Prices for uniforms can vary anywhere between Dh30 to Dh100, depending on the school and type of uniform.

“There are more customers coming into the store. We have to implement the tax starting January 1, so we see that they are some customers coming in to buy additional books now,” Argent said.

Noina Khan, the owner of the Uniform Centre, believes that parents should not be stocking up on uniforms so early as schools may change their policy on the type of uniforms.

Khan said that schools sometimes change the style of uniforms, every two to three years. “Parents have to think what if the school changes their policy. They will have all of these additional uniforms that their child cannot wear anymore,” she said.

However, a tax expert at Dubaibased Tax Consultancy, Sarah Ferguson, said: “To summarise, the impact of VAT on school uniforms in the UAE will be a 5 per cent increase to the end consumer. Parents can prepare themselves better by purchasing school uniforms before January 1, 2018 when the new VAT rules take effect. The VAT impact on school books in the UAE that are related to the curriculum will be zero-rated and will not be affected by the implementation of VAT.”

sarwat@khaleejtimes.com