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Is UAE planning to impose 5% VAT on withdrawals from ATMs of other banks?

Is UAE planning to impose 5% VAT on withdrawals from ATMs of other banks?
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Dubai: From January 2018, UAE is going to impose 5% VAT on certain goods and services. Along with UAE, Saudi Arabia is also going to implement this tax.

This tax will not be applicable on the amounts withdrawn from ATMs of other banks. However, it will be collected on the Dh2 fee charged by banks.

For example, if a customer withdraws Dh10,000 cash from Bank B’s ATM despite having an account with Bank A, VAT will not be applicable to the withdrawn amount. However, it will be collected on the Dh2 fee charged by banks.

Talking about this tax, Nirav Shah, Director, Fame Advisory said that VAT will not be applicable on withdrawals of amounts as there is no transaction. He further said that banks will include VAT on all their fees.