Value Added Tax (VAT) is an indirect tax that is being introduced by the UAE Government, which will be payable by both business and Individuals.
VAT will be introduced across the UAE on 1 January 2018 at a standard rate of 5%.
VAT will apply to applicable products and services at a rate of 5%. Further details regarding VAT application on our products and services will be made available in the coming weeks.
Exceptions to VAT are only by law, and these are published by the Federal Tax Authority. There is a possibility for business owners to claim back their VAT payments, provided they have registered for VAT and meet the requirements. For further details, please visit www.tax.gov.ae
From 1st January 2018, most of the products and services provided by Etisalat shall have VAT applied upon consumption, in compliance with the provisions of the law and its Executive Regulations i.e. a bundle of AED 100 will become AED 105
From 1st January 2018, most of the products and services provided by Etisalat shall have VAT applied upon their charges / fees in compliance with the provisions of the law and its Executive Regulations. Transitional arrangements will apply for contracts and/or services which span 1st January 2018.
Yes, once you receive your Tax registration number (TRN) you are required to send this to us. This is important for us to update your account details, and ensure that your TRN is reflected on our monthly tax invoice. The inclusion of your Tax Registration Number (TRN) on our bill is required for you to claim back the incurred VAT within your VAT return.
All Etisalat Business customers who are entitled to recover their input VAT must officially submit their VAT registration details including Tax Registration Number (TRN) with supporting evidence to Etisalat latest by 21st December 2017 either through contacting their Account Manager or on www.etisalat.ae/businesstrn in order to be provided with a Full VAT Invoice in January 2018.
A supplier registered or required to be registered for VAT must issue a valid VAT invoice for the supply. To be considered as a valid VAT invoice, the document must follow a specific format as mentioned in the legislation. In certain situations the supplier may be able to issue a simplified VAT invoice. The conditions for the VAT invoice and the simplified VAT invoice are mentioned in the legislation.
Special rules will be provided to deal with various situations that may arise in respect of supplies that span the introduction of VAT. For example:
• Where a payment is received in respect of a supply of goods before the introduction of VAT but the goods are actually delivered after the introduction of VAT, this means that VAT will have to be charged on such supplies. Likewise, special rules will apply with regards to supplies of services spanning the introduction of VAT.
• Where a contract is concluded prior to the introduction of VAT in respect of a supply which is wholly or partly made after the introduction of VAT, and the contract does not contain clauses relating to the VAT treatment of the supply, then consideration for the supply will be treated as inclusive of VAT. There will, however, be special provisions to allow suppliers to charge VAT in situations where their recipient is able to recover their VAT but where there is no VAT clause.
We suggest you visit Federal Tax Authority website Federal Tax Authority website for more information.
Etisalat’s Tax Registration Number is 100023129800003 , The official registration certificate is available here (VAT Registration Certificate)