VAT

FAQ

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. 

  1. 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.  
  1. 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%. 
  1. 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. 
  1. 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 
  1. Where can I get more information?
    We suggest you visit Federal Tax Authority website  Federal Tax Authority website for more information.
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