The five percent additional fee will only apply to usage of services
The price of prepaid recharge cards has not been increased in line with the introduction of Value Added Tax (VAT) on January 1, according to UAE telecom operators Etisalat and Du.
However, the five percent additional fee will apply to usage of their services, they said.
“Etisalat has introduced five denominations of recharge cards sold at AED30, AED55, AED110, AED210 and AED525 to ensure customers have sufficient credit to subscribe to existing data and combo packages after adding 5% VAT,” said the operator in an official release.
Meanwhile, postpaid users will see VAT added to their bills.
Du also confirmed customers will not be asked to pay extra for prepaid recharge cards.
Both companies have asked distributors to refrain from applying the tax on top of the approved pricing and levy additional charges, and urged customers to abstain from paying more than the amount stated on its recharge cards, and report any unwarranted price increases.
VAT does not apply to third-party purchases, roaming services or donation SMS’s.