After VAT 5 percent value-added tax (VAT) in the country, Uber and Careem, two of the most popular apps used by commuters in the UAE, has announced.
“Uber trip fares will increase slightly for all ride options, including uberX, UberSELECT, UberBLACK, UberXL, UberONE and UberVIP in the rides app,” Uber said.
“While transportation is exempt from the 5 percent VAT, the tax does apply to the marketplace services provided by Uber through the app, which is equivalent to 1.7 percent of the total trip fare,” the statement added.
Simply put, this means if a ride earlier cost Dh100, it will now cost Dh100 + 1.7 percent or Dh101.7.
“Your ride with Careem will be taxed only on the portion of the fare that is attributable to our marketplace service. This will translate into an average fare increase of 1 percent,” a statement from Careem said.