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Etisalat to charge Dh25 if you don't pay your bills on time

Dubai - Etisalat and du will apply VAT on most of their products and services from January 1, 2018.

UAE telecom firm Etisalat will charge subscribers Dh25 if they don't pay their bills on time.

The late payment charges will be applicable to landline and mobile services, the company said in a statement to its customers.

In another announcement, Etisalat, along with UAE's other telecom company du, said they will charge five per cent value-added tax on the services and products they offer to the consumers in the country.

"Starting from the 1st of January 2018, most of the Etisalat's products and services shall be subject to a 5 per cent value-added tax in compliance with federal laws and regulations levying and regulating the tax in the UAE," Etisalat said in a statement to customers.

Telecom operator du also said on its website that it would apply the standard VAT rate of 5 per cent from January 2018 to its products and services.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Monday approved the executive regulations for the VAT.

The UAE will impose five per cent VAT from 7am, January 1, 2018, on a host of goods and services.

VAT is a consumption tax that the end-user is obligated to pay and Etisalat will be only acting as a collection agent on behalf of the taxation authority, Etisalat added.

Citing an example, it said a bundle of Dh100 would cost Dh105 from January 2018.

Etisalat urged all its business customers who are entitled to recover their input VAT must officially submit their VAT registration details including Tax Registration Number with supporting evidence to Etisalat latest by December 21, 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.