Effective 1st January 2018, the Value Added Tax (VAT) Law 8/2017 and its Executive Regulations will be implemented in the UAE. Since Dubai Electricity and Water Authority (DEWA) is one of the registered government organisations that are subject to the provisions of this law, the consumption bills will reflect VAT at 5% starting 1st January 2018, in compliance with the aforementioned VAT law.
For more information about VAT, please visit the Federal Tax Authority’s website https://www.tax.gov.ae
DEWA Tax Registration Number (TRN) is 100027620200003.
1. What is VAT?
Value Added Tax (VAT) is a tax imposed by the UAE Government on supply of goods and services.
2. When will the VAT come into effect and what will be the rate?
VAT will be introduced across the UAE on 1 January 2018 at a standard rate of 5%.
3. How the VAT will be applied?
VAT will be added in DEWA’s consumption bill at 5%. However, VAT is not applicable in respect of Housing fee, Sewerage fee, and Irrigation fee, collected by DEWA on behalf of Dubai Municipality. Knowledge fee and Innovation fee are also exempted from VAT.
4. Is it compulsory to pay VAT?
Yes. Exceptions to VAT are only by law, and these are published by the Federal Tax Authority. Business owners can claim back their VAT payments, provided they have registered for VAT and meet the requirements. For further details, please visit www.tax.gov.ae
5. How can a business register for VAT and receive a Tax Registration Number (TRN)?
Businesses can register for VAT tax through the e-services section on the FTA website @ https://eservices.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 DEWA?
As a Customer: After receiving a Tax Registration Number (TRN), you are required to update your account details through our customer portal so that your TRN is printed in our monthly bill sent to you. This allows you to recover VAT when you submit a VAT return.
As a Supplier: Your supply of goods and services after 1.1.2018 is subject to VAT. You must register your TRN with DEWA through our SRM portal using the link https://srm.dewa.gov.ae and login using your credentials. Your TRN number and DEWA’s TRN number must be mentioned in all your invoices, if not VAT billed by you will not be paid.
7. What is the change in the process of submitting invoices to DEWA for our supplies/services?
While logging your invoice using the Supplier Relationship Management (SRM) portal against the Goods Received Note (GRN) or Service entry sheet, you must select the correct tax code.
8. Where can I get more information?
For more information, please visit www.tax.gov.ae