Abu Dhabi – Mubasher: The Central Bank of the UAE (CBUAE) plans to impose a 5% value-added tax (VAT) on banking services, sources familiar with the matter told Al Khaleej newspaper.
The central bank is on the verge of informing banks about its final decision regarding this matter, the sources added.
The VAT on banking services will likely enter into effect starting from May 2018, they noted.
By the end of December, the CBUAE had asked banks to bear the VAT without charging clients any additional fees.
The UAE expects VAT revenues to reach between AED 10 billion and AED 12 billion per year after applying the tax to all products and services.
