Abu Dhabi: Starting January 1, Etisalat and Du will start collecting Value Added Tax (VAT) with a standard rate of 5 per cent that will be applicable on products and usage of its services.
For postpaid customers, 5 per cent VAT will be added on the monthly bill, while prepaid customers will continue to recharge as usual.
The 5 per cent VAT will apply on the actual usage of the credit towards Etisalat services and not on the prepaid recharge cards value.
Etisalat said it has taken necessary steps in communicating all detailed information on all its platforms and answer any queries regarding the implementation of VAT on its products and services.
The company is also encouraging its business customers to register with the Federal Tax Authority and submit their Tax Registration Number to Etisalat at the earliest.
“Etisalat is taking all efforts to be ready and compliant for the new law coming into effect and provide complete information to all customers and its effect in the future. Etisalat has already started contacting all customers to increase awareness and provide clarity on the introduction of VAT,” the telecom firm said on Thursday.
Emirates Integrated Telecommunications Company, Du also said it will apply the standard VAT rate of 5 per cent on its products and services starting from January 1. For postpaid customers, there will be 5 per cent VAT on their total monthly bill, while prepaid customers will continue to recharge as normal with More Time, More International and More Credit.
“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,” Fahad Al Hassawi, Deputy Chief Executive Officer, Emirates Integrated Telecommunications Company said in a statement earlier this month.
