iPhone | iPad
Android
Huawei
VATP029 states that reverse charge mechanism applies only to goods and not to services.
Business1 day ago
KT APPDOWNLOAD
UAE residents to pay 5% VAT on bottled water
Dubai - VAT will also be levied on Dewa bills from January 2018.
Girish Chand, director, MCA Management Consultants, confirmed that VAT would be levied on bottled water as well as on the electricity and water bills.
The Dubai Electricity and Water Authority (Dewa) on Wednesday said that with effect from January 1, 2018, the residents' consumption bills will reflect five per cent VAT in compliance with the Value Added Tax (VAT) Law 8/2017 and its Executive Regulations.
However, VAT is not applicable in respect of housing fee, sewerage fee, and irrigation fee, collected by Dewa on behalf of Dubai Municipality. Knowledge fee and Innovation fee are also exempted from VAT, the utility said on its website.
The Federal Electricity and Water Authority (Fewa) in the UAE said VAT would also be levied on the consumers' bills, especially electricity bills, effective from January 1, 2018.
In addition, food items will also be subject to five per cent VAT. According to Euromonitor International figures, the UAE residents are expected to spend about Dh103.11 billion on F&B in 2017.
Analysts believe that VAT will not have a big impact on the cost of living in the country as the rate is one of the lowest in the world.
Among other countries around the globe, Denmark has placed VAT at 25 per cent, Morocco at 20 per cent, Tunisia at 18 per cent, Algeria at 17 per cent and Jordan at 16 per cent.
The introduction of VAT will help the UAE government to generate an estimated Dh12 billion worth of revenue in the first year, which will increase to Dh20 billion in 2019.
The UAE and Saudi Arabia will implement VAT from 7am on January 1 under the framework agreed among the GCC countries. While Oman and Kuwait have decided to postpone it till 2019.
The introduction of VAT will help the UAE government to generate an estimated Dh12 billion worth of revenue in the first year, which will increase to Dh20 billion in 2019.
waheedabbas@khaleejtimes.com
More news from Business
World's 500 richest people lose combined total of $1.4 trillion in first half of 2022
Business2 days ago
Lulu Group has operations in 23 countries serving 1.6 million shoppers everyday.
Business3 days ago
The group's next meeting would take place on August 3.
Business4 days ago
Company will explore opportunities in new energy sectors such as Blue Hydrogen and Carbon Capture Utilisation and Storage
Business4 days ago
The AI CoE will offer world-class resources and expertise, resulting from the strategic alliance between e& enterprise and DataRobot signed earlier this month
Business4 days ago
The global advertising sector grows annually by at least 5% as the advertising spending exceeded $720 billion in 2021.
Business4 days ago
Capital to invest Dh10 billion across six transformational programmes
Business4 days ago