Abu Dhabi – Mubasher: The value added tax (VAT) will be imposed on the consumers’ bills, especially electricity bills, effective January 2018, said the Federal Electricity and Water Authority (FEWA) in the UAE.
VAT will not be applied on the consumers’ arrears, Al-Ittihad newspaper reported, citing the FEWA as saying.
FEWA’s director general Mohammed Mohammed Saleh said that VAT would be imposed on all clients' consumption starting from 1 January 2018.
The federal tax authority (FTA) noted in a previous statement that VAT will be applied in the UAE by 5%, effective 1 January.
The UAE forecasts raising receipts of AED 10 billion and AED 12 billion ($2.7 billion - $3.2 billion) after implementing VAT in the first year on all products and services, while 100 basic commodities would be VAT-free.
