du has announced that it will collect tax on behalf of the government at a standard rate of 5%, which will be added on applicable products and usage of its services starting from January 1, 2018. This is in compliance with the Federal Decree-Law No 8 of 2017 issued by President His Highness Sheikh Khalifa bin Zayed Al Nahyan, on the introduction of VAT in the UAE.
The company explained in a statement that it is working to ensure its readiness and compliance for the new law to come into effect, and promises to offer its customers complete clarity on how the new regime will affect them in the future. To this effect, the company has started contacting all of its customers, electronically and personally, to advise them of the introduction of VAT.
“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,” said Fahad Al Hassawi, Deputy Chief Executive Officer, Emirates Integrated Telecommunications Company.
As mandated by the UAE Federal Tax Authority, 5% VAT will be added to applicable telecommunications products and services effective from January 1, 2018. For postpaid customers, 5% 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 5% 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% VAT deduction.
“We have created a dedicated page on our website, which provides detailed information and answers any queries that our customers may have regarding implementation of VAT on du products and services,” Al Hassawi added.
The company is also encouraging its business customers to register with the Federal Tax Authority and submit their Tax Registration Number to du at the earliest.
