Will I have to pay VAT on my phone bill?

Will I have to pay VAT on my phone bill?


Both prepaid and postpaid customers to feel the impact
Naushad K. Cherrayil, Staff Reporter

Dubai: Most of the telecom operators’ products and services in the UAE will be subject to a five per cent value added tax (VAT) starting from January 1.This is set to include all services consumed through mobile or fixed infrastructure and for prepaid and postpaid customers. For example, a bundle of Dh100 will become Dh105 from January 1, 2018.

There is not expected to be a heavy negative impact on consumer consumption throughout 2018.For customers who have ongoing mobile phone contracts, prices will change in January to reflect the new prices, inclusive of VAT.The telecommunication companies have refused to say whether or not tourists will be taxed on their roaming costs.