Etisalat announces 5% VAT on products, services.
Summary: Charge will apply to products, telecom services starting January 1, 2018
Image Credit: Gulf News Staff Report
Dubai: Etisalat has announced that starting January 1, 2018, it will start collecting VAT with a standard rate of 5 per cent on behalf of the government, which will be applicable to products and usage of its services.
This complies with the Federal Decree-Law No 8 of 2017 issued by the government on the introduction of Value Added Tax (VAT) in the UAE.
For postpaid customers, a 5 per cent VAT will be added on the monthly bill, while prepaid customers will continue to recharge as usual. The 5 percent VAT will apply on the actual usage of the credit towards Etisalat services and not on the prepaid recharge cards value.
"Etisalat is taking all efforts to be ready and compliant for the new law coming into effect and provide complete information to all customers and its effect in the future. Etisalat has already started contacting all customers to increase awareness and provide clarity on the introduction of VAT," Etisalat said in a statement.
As mandated by the UAE Federal Tax Authority, 5 per cent VAT will be added to applicable telecommunications products and services effective from January 1, 2018.
The company is also encouraging its business customers to register with the Federal Tax Authority and submit their Tax Registration Number to Etisalat at the earliest.
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|Publication:||Gulf News (United Arab Emirates)|
|Date:||Dec 21, 2017|
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