VAT in UAE: du reveals details of charges for customers

5 per cent levy will come into effect on January 1, 2018

du customers claim they have been hit with "unfair" charges after using their phones abroad over the holidays. Sarah Dea / The National

Emirates Integrated Telecommunications Company (du) has announced details of how VAT will be applied to its products and services when it comes into effect on January 1.

For postpaid customers, 5 per cent VAT will be reflected on their total monthly bill, while prepaid customers will continue to recharge as normal with More Time, More International and More Credit.

The company added in a statement that VAT will apply on the usage of their credit towards du services with the exception of More Data where the credit received will be after the 5 per cent VAT deduction.

du customers, as well as those of Etisalat, had been sent messages in recent weeks notifying them that the 5 per cent tax would be added at the beginning of next month.

Etisalat said that “most” of its products and services would be subject to the rate hike in compliance with federal laws and regulations “levying and regulating the tax in the UAE”.

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Fahad Al Hassawi, deputy chief executive, Emirates Integrated Telecommunications Company, said: “We are taking all necessary measures to educate our customers so that they are fully aware of the government directives regarding VAT and the way that it will impact their telecommunications spend."

“The introduction of VAT is a step forward towards a greater future for the UAE, and we want to ensure our customers are aware of their contribution towards this.”