How Does VAT Work?

Value Added Tax (VAT) is an indirect tax imposed on the supply of most goods and services. It was introduced in the UAE on 1 January 2018. e&'s products and services are subject to VAT and e& is obligated to collect and remit funds to the Federal Tax Authority (FTA). e& is legally obliged to comply with this Government mandate.

VAT is levied on the supply of all goods and services if no explicit provision is made to impose a zero rate or an exemption. The VAT will provide the UAE with a new source of income which will be continued to be utilised to provide high-quality public services. It will also help government move towards its vision of reducing dependence on oil and other hydrocarbons as a source of revenue.

The TRN is the identification number given to every person registered under UAE VAT. Only persons with a valid TRN can charge VAT on supplies & services. It is mandatory for business customers, who are entitled to recover their VAT input, to provide their TRN with supporting documents to e&.