News, Telecoms

du announces VAT charges on products and services

du has announced that it will issue a standard VAT rate of 5 percent on its products and services, starting from January 1, 2018.

du has started contacting all of its customers, electronically and personally, to advise them of the introduction of VAT.
du has started contacting all of its customers, electronically and personally, to advise them of the introduction of VAT.

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 Value Added Tax (VAT) in the UAE, du has revealed that it is working to ensure its readiness 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. “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.”

As mandated by the UAE Federal Tax Authority, 5 percent VAT will be added to applicable telecommunications products and services effective from January 1, 2018.

For postpaid customers, 5 percent 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 percent 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 percent VAT deduction.

“We wish to be transparent with our customers as to how VAT will apply on our products and services, and ensure that they have all the required information before the start of the new-year. Therefore, 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.

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