What is a private transport and how is it treated under the UAE VAT law?

Any means of transportation that is used to transport a specific group of people on a contractual basis is considered to be a private transport. Under the UAE VAT law, private transportation services will attract a standard VAT rate of 5%.

Some examples of private transportation include school buses, buses that are used to transport employees or workers to or from a work place, and shuttle buses that transport hotel guests from the hotel to other locations or vice versa.