From 1 Jan 2018, the UAE Government has introduced Value Added Tax (VAT) at 5%, which applies to our products and services. Read more

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VAT Image

Value Added Tax (VAT)

Starting from 1 January 2018, the UAE Government has introduced Value Added Tax (VAT) at a standard rate of 5% applicable to most goods and services in the UAE. This tax has been introduced as part of the national strategy towards building a diversified and robust economy, and the continued provision of high quality services for the country’s citizens and residents.

 du is complying with this Government mandate and from 1 January, the standard VAT rate of 5% applies to our products and services.


    • 1) What is Value Added Tax?

      Value Added Tax [VAT] is an indirect tax that has been introduced by the UAE Government, and is payable by both business and Individuals.

    • 2) Why has the UAE Government implemented VAT?

      VAT has been introduced by the UAE Government as part of a national strategy towards building a diversified and robust economy, and to ensure the continued provision of high quality public services for the country’s citizens and residents.

    • 3) When will VAT come into effect and at what rates?

      Starting from 1 January 2018, VAT is effective at a standard rate of 5% on most goods and services, including telecommunication services.

    • 4) How does VAT apply to du products and services?

      VAT applies to taxable products and services at a rate of 5%. Your Terms and Conditions have been updated accordingly, and are available to view here.

    • 5) Is it compulsory to pay VAT?

      Exceptions to VAT are only by law, and these are published by the Federal Tax Authority. There is a possibility for business owners to claim back their VAT contribution, provided they have registered for VAT and meet the requirements. For further details, please visit www.tax.gov.ae

    • 6) I am a business owner. I have registered with the UAE Federal Tax Authority and have received my certificate and Tax Registration Number (TRN). Do I need to share this with du?

      Yes, once you receive your Tax registration number (TRN) you are required to send this to us. This is important for us to update your account details, and ensure that your TRN is reflected on our monthly tax invoice. The inclusion of your Tax Registration Number (TRN) on our bill is required for you to claim back the incurred VAT within your VAT return.

    • 7) How can I provide my Tax Registration Number to du?

      If you are a business customer, you can provide your company’s Tax Registration Number, along with copies of the relevant documents, through this simple form. Once the provided details are verified, your records on our system will be updated with the provided and will reflect in the following month’s du Tax Invoice.

      If you are a personal customer, please visit any du store to provide your TRN details.

    • 8) Where can I find du’s Tax Registration Number?

      du’s Tax Registration Number is 100001397700003. The official registration certificate is available here Certificate of VAT Registration

    • 1) I’m a prepaid customer. How will I be affected by VAT?

      In line with Government mandate, starting 1 January 2018, VAT at 5% will be added when you purchase a new SIM card, and on our tariffs and rates when you use your prepaid credit.

      VAT does not apply to international roaming services or bundles, donations and charitable SMSes, certain third party content purchases, mParking, deposits, advance payments and Mobile Credit Transfer and monthly rate plan charges for Device Instalment Plans subscribed to before 1 Jan 2018.

    • 2) Do I need to pay VAT if I recharge my prepaid line through a recharge card, du app, My Account or Quick recharge?

      No. VAT applies when you use your prepaid credit, and is not dependent on how or where you recharge.

    • 3) Do I pay VAT on recharge vouchers purchased during 2018?

      You should continue to pay the amount printed on the recharge card. VAT only applies when you use the credit towards our services.

    • 4) Does VAT apply on recharge vouchers purchased in 2017 but used during 2018?

      VAT does not apply on the purchase of recharge vouchers. VAT at 5% applies when you use your prepaid credit regardless of when the recharge has been performed.

    • 5) Will I be charged with VAT If I transfer credit to my friend’s du prepaid line using Mobile Credit Transfer service?

      No, VAT applies on the usage of credit, and not on the transfer of credit.

    • 6) If I buy a new prepaid SIM, will I pay VAT?

      Yes, when purchasing a new SIM card, VAT at 5% is applicable onthe one time SIM card activation fee.

    • 7) Is VAT added to the price of the bundles/deals I buy through *055#?

      Yes, VAT at 5% applies to bundles and deals purchased through *055#.

    • 8) Does VAT apply on Tourist SIM?

      Yes, VAT applies on the purchase of Tourist SIM card and usage of its credit.

    • 9) I’m a postpaid customer. How am I affected by VAT?

      In line with Government mandate, starting 1 January 2018, VAT at 5% will be added to your monthly bill. VAT applies to all new and existing monthly contracts. VAT does not apply to international roaming services or bundles, donations and charitable SMSes and certain third party content purchases.

    • 10) If I buy a new post-paid SIM, will I pay VAT?

      Yes, when purchasing a new SIM card, VAT at 5% will be added to the SIM card price and activation fee.

    • 11) Does VAT apply to contracts that started before 1 January 2018?

      Yes, VAT applies to existing monthly contracts continuing into 2018, even if they were signed before 1 January 2018. Please refer to our Terms and Conditions for more information.

    • 12) Is VAT applicable on foreclosure fees?

      Yes, VAT applies on foreclosure fees.

    • 13) Does VAT apply on the purchase of handsets and other devices?

      Yes, when paying the full price upfront on the purchase of a standalone handset, VAT is applicable on the sale price.

    • 14) Does VAT apply on the purchase of handsets through an instalment plan?

      In the case of purchases made on an instalment contract, VAT is applicable on the monthly instalment amount and any additional services such as extended warranty, insurance etc. VAT does not apply to any interest fee that is charged in addition to the monthly contract amount.

    • 15) Does VAT apply on rate plans which include a handset, such as Executive Plan, Executive Plan Plus and Business Connect?

      Yes, VAT is applicable on the monthly contract rate and on any upfront or additional fees payable, including the fees for choosing a higher price handset model.

    • 16) Does VAT apply on handset purchases with bundled one off or recurring telco benefits, such as the Business Phone Plan?

      Yes, if a customer pays for the handset upfront, VAT is applicable on the upfront value payable.

    • 17) Does VAT apply on the migration fees from Postpaid to Prepaid?

      Yes, VAT is applicable on any associated migration fees and charged accordingly.

    • 18) I’m a home / fixed services customer? How am I affected by VAT?

      In line with Government mandate, starting 1January 2018, VAT at 5% will be added to your monthly bill. VAT is applicable on all new and existing home services and charges including monthly contracts, landline usage, device purchases and our Video on Demand service.

    • 19) Does VAT apply on the TV Deposit and Cash deposit for Home Services?

      No, VAT does not apply to deposits.

    • 20) How is the total amount displayed on the first page of my tax bill calculated?

      The total amount displayed on your bill is the sum of these 3 charges:
      •    Subtotal of taxable charges
      •    VAT payable amount at 5% on taxable services during the current billed period
      •    Subtotal of non-taxable charges, including any VAT related adjustments

    • 21) What does ‘Sub-total of taxable services’ mean?

      To help you understand your bill better, we have provided details with regards to services that are taxable and those that are not.  ‘Subtotal of taxable services’ is the sum of all your current month charges that are taxable, such as monthly recurring fee, usage fees and one time fees.

    • 22) What does ‘Subtotal of non-taxable services’ mean?

      The sum of your charges of non-taxable items, such as roaming, donations, mParking and certain third party content purchases are displayed as the ‘Subtotal of non-taxable services’. This will also include any VAT related adjustments from the previous month.

    • 23) What are the VAT adjustments on my bill?

      Certain charges or credits related to VAT from the previous month are reflected as VAT Adjustments within the ‘Other Charges and ‘Credits’ section of your bill.  The adjustment total is included within the “Sum of non-taxable services” amount on the first page of your bill.

    • 1) Does VAT apply on my du services?

      In line with Government mandate, starting 1 January 2018, VAT at 5% will be charged within your monthly bill on all taxable goods and services with the exception of international roaming services, donations and charitable SMSes and certain third party content purchases.

    • 2) How will VAT be reflected on my bill?

      VAT is applicable on the overall net billed amount, and will be reflected on your bill as a separate line item.

    • 3) I am a business owner. I have registered with the UAE Federal Tax Authority and have received my certificate and Tax registration number (TRN). Do I need to share this with du?

      Yes, once you receive your Tax registration number (TRN) you are required to share this with us. This is important for us to update your account details, and ensure that your TRN is reflected on our monthly tax invoice.  The inclusion of your Tax Registration Number (TRN) on our bill is required for you to claim back the incurred VAT within your VAT return.  Please refer to the FTA’s website for further information.

    • 4) How can I provide my Tax Registration Number to du?

      If you are a business customer, you can provide your Tax Registration Number, along with copies of the relevant documents, through this simple form.  Once the provided details are verified, your records on our system will be updated with the provided and will reflect in the following month’s du Tax Invoice.
      If you are a personal customer, please visit any du store to provide your TRN details.

    • 5) Will VAT apply if I purchase a new prepaid or post-paid SIM card after 1 January 2018?

      Yes, when purchasing a new SIM card, VAT will be added to the one time SIM card activation fee.

    • 6) I’m a prepaid customer. How am I affected by VAT

      In line with Government mandate, starting 1 January 2018, VAT at 5% is applicable when you purchase a new SIM card, and on our tariffs and rates when you use your prepaid credit.
       
      VAT does not apply to international roaming services or bundles, donations and charitable SMSes and certain third party content purchases.

    • 7) Do I need to pay VAT if I recharge my prepaid line through a recharge card, du app, My Account, Quick recharge?

      For prepaid services, VAT is applicable upon the usage of prepaid credit, and is not dependent on how or where you recharge.

    • 8) Is VAT applicable If I transfer credit to my colleague via the du credit transfer service?

      No, VAT does not apply on transferred credit.

    • 9) Does VAT apply on the Business Circle plan?

      Yes, on the Business Circle plan, VAT is applicable to the auto top up amount and will be charged on your monthly bill. Once you consume your benefits, your usage will be based on the updated tariffs and rates where 5% VAT is applicable.

    • 10) Does VAT apply to auto top ups on my Business Circle or Business Pay As You Go plans?

      Yes, VAT is applicable on the auto top up amount and will be charged on your post-paid bill. VAT also applies on any additional usage after the completion of your auto top up credit benefits.

    • 11) I am subscribed to Corporate/ Business Optimiser. How does VAT apply?

      VAT is applicable on the overall net billed amount and charged on the bill accordingly, after calculating the Corporate/Business Optimiser discounts, along with any other discounts, commitments, and charges, and usage.

    • 12) Does VAT apply on the migration fees from Postpaid to Prepaid or Business to Personal?

      Yes, VAT is applicable on any associated migration fees and charged accordingly.

    • 13) Is it possible to pay my du bills without paying VAT?

      The net payable amount shown on your bill will include the VAT charged. The VAT amount is payable as part of your total outstanding amount.

    • 14) Does VAT apply on new fixed or mobile services that are subscribed to during 2018?

      Yes, VAT is applicable on fixed or mobile services subscribed to during 2018. VAT does not apply to international roaming services or bundles, donations and charitable SMSes and certain third party content purchases.

    • 15) Does VAT apply on the purchase of a new device/handset with the device instalment offer?

      In the case of purchases made on our device instalment offer, VAT is applicable on the monthly instalment amount and any additional services such as extended warranty, insurance etc. VAT also applies to any associated upfront one time fees.

    • 16) Does VAT apply on plans where a new device/handset is an included benefit, such as Executive Plan, Executive Plan Plus, and Business Connect?

      Yes, for plans with included handset benefits, VAT  is applicable on the monthly recurring charge of the plan. VAT also applies on any associated upfront one time fees.

    • 17) Will I pay VAT if I get a new device/handset where I pay an upfront fee and receive some benefits free of cost, such as the Business Phone plan?

      Yes, VAT is applicable on the monthly recurring charge, and on any associated upfront one time fees.

    • 18) Does VAT apply on the purchase of a device/ handset without any plan, i.e. on a standalone basis?

      Yes, VAT is applicable and will be charged on the handset sale price.

    • 19) Does VAT apply on services that have a minimal monthly commitment, such as Premier Plan or Exclusive Business Metallic Numbers?

      VAT is applicable on the overall net billed amount and will be charged on your bill accordingly, after calculating the Corporate/Business Optimiser discounts, and any other discounts, commitments, and charges, and usage.

    • 20) Does VAT apply on one-time service fees such as SIM Swap, change of ownership, downgrades, relocations etc.?

      Yes, VAT is applicable on any associated charges and charged accordingly.

    • 21) This month’s bill looks different than the bill I am used to receiving. What has changed?

      The bill you have received in February is your first bill including VAT. This bill also serves as your ‘tax invoice’ which can be used to claim back VAT from the Government, provided you meet their eligibility criteria and have provided your Tax Registration Number to us.

      Your bill also includes details of where VAT is applicable (‘subtotal of taxable services’), the charged VAT amount (VAT amount payable at 5%) and items that are not taxed (‘subtotal of non-taxable services’).

      The bill also includes our Tax Registration Number and address.

    • 22) How is the total amount displayed on the first page of my tax bill calculated?

      The total amount displayed on your bill is the sum of the following three charges:
      •    Subtotal of taxable charges
      •    VAT payable amount at 5% on taxable services during the current billed period
      •    Subtotal of non-taxable charges, including roaming, donations, mParking, certain third party content purchases and any VAT related adjustments.

    • 23) What does ‘Sub-total of taxable services’ mean?

      To help you understand your bill better, we have provided details with regards to services that are taxable and those that are not. ‘Subtotal of taxable services’ is the sum of all your current month charges that are taxable, such as monthly recurring fee, usage fees, one time fees and any other associated fees that are subject to 5% VAT.
      The applicable VAT amount has been displayed in the following line for clarity.

    • 24) What does ‘Subtotal of non-taxable services (including any VAT adjustment)’ mean?

      The sum of your charges of non-taxable items, such as roaming, donations, mParking and certain third party content purchases are displayed as the ‘Subtotal of non-taxable services’.  This will also include any VAT related adjustments from the previous month(s).

    • 25) What does ‘VAT amount payable at 5%” (for charges during this period only)’ mean?

      The applicable VAT on taxable services for the current billing period are displayed under ‘VAT amount payable at 5%’. This line will appear on the first page of your bill and in the Bill Summary section.

    • 26) What are the ‘VAT adjustments’ appearing on my bill?

      Certain charges or credits related to VAT from the previous month(s) are reflected as VAT Adjustments within the ‘Additional Charges’ and ‘Credits’ section of your bill.  The adjustment total is included within the ‘Sum of non-taxable services’ amount on the first page of your bill.