Starting from 1st January 2018, most products and services shall be subject to 5% value added tax in compliance with the federal Laws & regulations levying and regulating the tax in the UAE. VAT is a consumption tax that the end user is obligated to pay and Etisalat will be only acting as a collection Agent on behalf of the taxation authority.
- What is VAT?
Value Added Tax (VAT) is an indirect tax that is being introduced by the UAE Government, which will be payable by both business and Individuals.
- When will the VAT go into effect and what will be the rates?
VAT will be introduced across the UAE on 1 January 2018 at a standard rate of 5%.
- How will VAT apply to swyp products and services?
VAT will apply to applicable products and services at a rate of 5%. VAT will be applied upon consumption, in compliance with the provisions of the law and its Executive Regulations i.e. a bundle of AED 50 will become AED 52.5.
Further details regarding VAT application on swyp products and services will be made available in the coming weeks.
- Is it compulsory to pay VAT?
Exceptions to VAT are only by law, and these are published by the Federal Tax Authority. For further details, please visit tax.gov.ae
- Where can I get more information?
We suggest you visit Federal Tax Authority website Federal Tax Authority website for more information.