VAT in UAE: Etisalat and du announce charges

UAE telecoms companies tell customers that products and services would be subject to the 5 per cent levy

epa06353338 A man looks at stock market movements on his mobile phone at a securities brokerage in Beijing, China, 27 November 2017. China's stock markets fell steeply on 27 November, furthering last week's sell off due to rising borrowing costs and more regulatory measures on financing risks.  EPA/HOW HWEE YOUNG

The two telecommunications companies in the UAE, Etisalat and du, sent customers messages announcing that products and services would be applicable to the 5 per cent value-added tax (VAT) that is coming into effect in a 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”.

“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,” the company said.


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Du sent a different message without specifying if some or all of its services and products would be taxed.

It said that the 5 per cent fee would be “applicable to our products and services. The company’s website said instead that “further details will be made available in the coming weeks”.

It is important that consumers know that businesses must be registered, providing a tax registration number to the public if requested, to collect VAT.