UAE Exchange now authorised to accept VAT payments

Money transfer company UAE Exchange has announced that it has now been authorised to start accepting value added tax (VAT) payments on behalf of the Federal Tax Authority (FTA) in the country.

All entities registered with the FTA who have a valid tax registration number (TRN) and a GIBAN account number can now make their VAT payments in any of the 150 UAE Exchange branches in the country, including 18 in Dubai metro stations.

The UAE introduced VAT alongside Saudi Arabia from January 1 this year at a rate of 5 per cent.

It applies to most goods and services including groceries, fuel and utility bills.

Read: Revealed: Goods and services subject to VAT in the UAE

In May, the UAE Cabinet decided to refund VAT for institutions working in the exhibitions and conferences sector. The change is intended to support the country’s status as a hub for the meetings, incentives, conferences and exhibitions (MICE) industry and to attract leading event organisers.

The UAE also reversed the application of the tax on the wholesale gold, diamonds and precious metals market.

Read: UAE rolls back tax on gold, diamonds, precious metals

Last month, an International Monetary Fund (IMF) official told Reuters that the implementation of the tax had gone smoothly and its impact on inflation was expected to ease.

Natalia Tamirisa, who heads the IMF mission to the UAE, said inflation is expected to average 3.5 per cent this year, up from 2 per cent last year, but will ultimately settle around 2.5 per cent, Tamirisa predicted.

She said the new tax was expected to lift revenues by 1.5 per cent of gross domestic product in the long run.

Read: IMF says UAE’s VAT introduction has gone well, impact short-lived