UAE Central Bank will soon decide on passing VAT to customers
The apex bank is in the process of informing banks of its final decision
The Central Bank of the UAE is likely to soon decide to allow banks to pass on 5 per cent value-added tax (VAT) to customers.
Quoting sources, the Arabic daily Al Khaleej reported that the apex bank is in the process of informing the banks of its final decision in this regard to pass on VAT to companies and individuals from May 1.
The central bank issued a circular in late December 2017 asking banks not to increase existing fees ahead of VAT until further notice from the apex bank.
Mayank Sawhney, director, MaxGrowth Consulting, earlier told Khaleej Times that the processing fee, file opening fee, assessment fee, evaluation fee, account management fee, etc., charged by banks will be subject to 5 per cent VAT in the UAE.
In case of credit cards, fees such as annual credit card fee, late payment fee, processing fee for transferring outstanding payment from one credit card to another, etc., will also attract 5 per cent VAT, Sawhney added.
However, some banks had updated their websites last year ahead of VAT implementation with notifications that certain fees, charges and commissions that they charge on their products and services will be subject to a 5 per cent VAT.
Big hitters Hemi Ahio and Mohammad Ali Bayat Farid will challenge for ... READ MORE
Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of the Abu... READ MORE
The new agreement will allow Logicom to make available to its channel ... READ MORE
Digital payments and financial solutions that make it easier to shop... READ MORE
'David was a man who believed passionately in this country and in its ... READ MORE
Chennai amassed 192-3 with opener Faf du Plessis anchoring their... READ MORE
The event also saw felicitations of around 15 Pakistani students in... READ MORE
He was previously the health minister. READ MORE