As residents brace for the upcoming introduction of Value Added Tax (VAT), it was recently revealed that home utilities will be subject to extra charges as well.
As of 1st January, water and electricity bills across the country will carry five percent tax.
The Abu Dhabi Water and Electricity Authority has reportedly instructed its distribution partners across the emirate, including in Al Ain, to spread the word to consumers for them to be fully aware of the adjustments.
Meanwhile, small and big business firms are once again reminded to diligently register and update their data in preparation for the new tax system.
UAE minister of finance Sheikh Hamdan bin Rashid Al Maktoum made the announcement as the deadline for registration and obtaining a tax registration number (TRN) nears.
Failure to complete VAT registration before year-end will result in a penalty of AED 20,000. Companies will also be required to halt transactions until they obtain the necessary permit.
To make this process easier, the Federal Tax Authority has launched an online portal for companies to access their details.
“The Ministry of Finance works in coordination with the Federal Tax Authority to ensure an easy application process for the all VAT related tax procedures,” Sheikh Hamdan said.
“We also put great emphasis on supporting all business sectors in the country as they go through the process of VAT related change, allowing them to apply VAT in a simplified manner through accessible and user-friendly digital systems.”
Explaining the importance of the tax, Sheikh Hamdan added: “Applying VAT plays a key role in building a sustainable knowledge economy, contributing to the infrastructure for the future development, strengthening public services and enhancing the UAE’s global competitiveness.”
For more information, visit: eservices.tax.gov.ae