DUBAI // Consumers are losing tens of millions of dirhams each year when they are not given the correct change at the checkout, according to economic and finance experts.
The practice of rounding off totals is essential to maintaining efficiency in the system, they say - but what we lose on one day is balanced off with gains when stores round down on others.
Anecdotal evidence suggests about Dh30 million may slip through consumers' fingers every year, though experts stress a scientific study has yet to be carried out.
Although high, the figure is far below that quoted in recent media reports, which suggested up to Dh100m could be lost every year.
"To say it is between Dh50m and Dh100m is to assume that figures are always being rounded up, which isn't the case," said Dr Steven Buigut, the head of accounting, finance and economics at the American University in Dubai's school of business administration.
"What you will find is that shops will round down just as much but, as a consumer, you will tend to remember the times when things are rounded up."
Dr Buigut said the answer was not to mint more coins through the Central Bank - because the cost of doing so is often more than the coin's face value.
"It is expensive to mint extra coins and bring them into circulation. To mint a penny, for example, would cost you about 1.3 pence because the base metal is more expensive," he said of the smallest element of UK currency. Any savings, therefore, would be swallowed up by the minting process, Dr Buigut said.
"In my own experience, I've had some days where the figures seemed to be rounded up and others when they were rounded down," he said.
"Even if you say 60 per cent of shops will round up, that still leaves a hefty total that will more likely round down. The trouble is, it's impossible to say for sure if people are losing out because, in most cases, it's anecdotal."
Professor Tarek Coury, an economist at the Dubai School of Government agreed, saying reader surveys were notoriously inaccurate, with only those motivated enough to respond giving their views, while the vast majority of the public stay silent.
"I think it's a bit of a red herring, to be honest," he said. "There is a selection bias in these kinds of surveys and, unfortunately, no scientific study has been done. Much of the figures being bandied about are through anecdotal experience.
"Even if you are being overcharged 50 fils once a week, that adds up to Dh2 a month."
The only way to be sure of always paying the correct amount is to pay by credit or debit card, Prof Coury said. "In most cases this is how people do pay for items anyway, as it's not practical to carry around so much cash. I would also advise consumers to do bulk buying whenever possible.
"The thing to keep in mind is that not everywhere accepts payment by card - and the places that do not [take cards] tend to have cheaper products, because they do not have the overheads associated with a card-payment system.
"So although you might not be getting the exact change back, the products you buy will be cheaper."
For shoppers it is an annoyance, but something they grudgingly accept. "I guess sometimes I have been undercharged and sometimes overcharged," said Vicky Andrews, a British expatriate housewife who lives in the Springs area of Dubai.
nhanif@thenational.ae
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Copa del Rey, semi-final second leg
Real Madrid 0
Barcelona 3 (Suarez (50', 73' pen), Varane (69' OG)
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On racial profiling at airports
Teaching in coronavirus times
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World Cup final
Who: France v Croatia
When: Sunday, July 15, 7pm (UAE)
TV: Game will be shown live on BeIN Sports for viewers in the Mena region
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
The view from The National
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
'Avengers: Infinity War'
Dir: The Russo Brothers
Starring: Chris Evans, Chris Pratt, Tom Holland, Robert Downey Junior, Scarlett Johansson, Elizabeth Olsen
Four stars
