Etisalat, du to charge VAT on services, products

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Abdul Basit

Dubai – Abu Dhabi-based Etisalat and Dubai-based due will start charging a 5 per cent Value-Added Tax (VAT) from January 1, 2018 on most of its services and products, both the telecom operators have announced.

The Etisalat statement said, “Starting from the 1st of January 2018, most of Etisalat’s products and services shall be subject to a 5 per cent value-added tax in compliance with federal laws & regulations levying and regulating the tax in the UAE.

“VAT is a consumption tax that the end user is obliged to pay and Etisalat will be only acting as a collection agent on behalf of the taxation authority. Etisalat is legally obliged to comply with this government mandate from the first of January 2018.”

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved the executive regulations of Federal Law No.8 of 2017 on Value Added Tax (VAT).

The bylaws govern the implementation of VAT, which will come into effect from January 2018.

The regulations define VAT as the 5 per cent tax imposed on the import and supply of goods and services at each stage of production and distribution, including what is a deemed supply, with the exception of specific supplies subject to the zero rate and what is exempted as specified in the law. – abdulbasit@theuaenews.com