A Guide to VAT

Value Added Tax (VAT) is an indirect tax set by the UAE Government and paid by both businesses and individuals. It is charged at the point of sale on goods and services that are consumed or used.

Yes. Since 1 January 2018, VAT has been added to the charges and fees of etisalat’s products and services, in line with the UAE VAT law and its Executive Regulations.

Speak with a tax adviser, or visit the UAE Federal Tax Authority website (www.tax.gov.ae) to find out how to register for VAT and obtain a Tax Registration Certificate.

Yes. Please submit your TRN details so that your TRN appears on your etisalat bills (tax invoices).

Under the regulations, your TRN must be shown on your etisalat bills (tax invoices) to support the input tax you claim in your VAT return.

Submit your TRN details, together with supporting documents, through etisalat’s Business Online Portal:

1. Log in to the etisalat Business Online Portal.
2. Open the MANAGE menu and click ‘My Companies’.
3. Select the Party ID and click ‘UPDATE’ to add or change your Tax Registration Number (TRN).
4. Upload a PDF copy of your company’s “Certificate of Registration for Value Added Tax in the United Arab Emirates”.
5. Check the details, then click ‘UPDATE’ to confirm.
6. Stay on the page until the confirmation message shows that your update was successful.

VAT was introduced across the UAE on 1 January 2018 at a standard rate of 5%.

All applicable products and services used and enjoyed in the UAE carry VAT at the standard rate of 5%.

Under the regulations for telecom services, a zero (0%) VAT rate applies to services used or consumed outside the UAE, such as mobile roaming charges, and some third-party services are exempt, such as m-parking fees.

Yes. The VAT applied is included in the Amount Due on your etisalat bills (tax invoices).

Exceptions to VAT can only be made by law and are published by the Federal Tax Authority. Business owners who have registered for VAT and meet the requirements may be able to claim back the VAT they pay. For more details, visit www.tax.gov.ae.

Since 1 January 2018, most etisalat products and services have VAT applied on consumption, in line with the law and its Executive Regulations – for example, a bundle of AED 100 becomes AED 105.

Yes. Special rules cover situations where a supply spans the introduction of VAT. For example:

• If payment for goods was received before VAT was introduced but the goods were delivered afterwards, VAT has to be charged on that supply. Special rules likewise apply to services that span the introduction of VAT.
• If a contract was signed before VAT was introduced for a supply made wholly or partly afterwards, and the contract has no clause on VAT treatment, the price for the supply is treated as including VAT. Special provisions do, however, allow suppliers to charge VAT where the customer is able to recover VAT but the contract has no VAT clause.

etisalat’s Tax Registration Number is 100023129800003. You can view the official VAT Registration Certificate here.