As Value Added Tax (VAT) gets implemented in UAE, more OFWs are worried if sending balikbayan boxes has a 5% tax.
The good news is, sending balikbayan boxes to the Philippines remains tax-free. However, the cargo boxes used in these parcels will be subjected to 5% VAT.
“Starting from January 2, prices of balikbayan boxes will carry 5 per cent VAT,” says Veronica Rey of LBC.
“This means a balikbayan box previously priced at Dh15 will become Dh15.75; Dh 20 box will become Dh 21 and our Dh25 jumbo box will become Dh26.25.” Rey added.
Rey emphasized that the sending of cargo/boxes to the Philippines, as well as other countries (except GCC) remains tax free. However, sending boxes and parcels across UAE and other GCC countries will be subjected to VAT.
The 5% VAT took effect last Monday but was then moved to Tuesday because it’s holiday, according to Khaleej Times.