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Dear Customer,

 

Starting from 1st January 2018, the UAE Government has introduced Value Added Tax (VAT) at the rate of 5%, which is applicable to sale of goods and provision of services in the UAE.

Please find below some valuable information regarding VAT implementation for your ready reference:

Value Added Tax (or VAT) is an indirect tax that is imposed as a type of general consumption tax on most goods and services that are bought and sold. 

VAT is levied by VAT-registered businesses which make supplies of goods and services in the course of their business.

You can also refer to the following website links provided by the Federal Tax Authority that contain valuable information on VAT and its implementation within the UAE:

https://www.tax.gov.ae/index.aspx
https://www.tax.gov.ae/pdf/fta-industry.pdf 

VAT invoice, wherever applicable, will be sent on a monthly basis to your registered email address with RAKBANK, which will include the required information as per applicable law.


You may refer to your tax consultant on how to arrive at your VAT threshold. We recommend that you also visit the Federal Tax Authority website https://www.tax.gov.ae/index.aspx for useful details on the VAT registration process.

RAKBANK’s Tax Registration Number is 100272500800003.


If you are a Business customer and are required to be VAT registered, we recommend that you do so at the earliest by visiting the Federal Tax Authority website www.tax.gov.ae for useful details on the VAT registration process. 
 
You can then provide your Tax Registration number so we can update it on your monthly tax invoice; this can be done by submitting the following documents through any of our branches or by emailing us at vat-update@rakbank.ae from your registered email ID with RAKBANK.
 
1. Copy of your valid Company Trade License
2. Copy of your Certificate of Tax Registration in UAE

You may refer to your tax consultant on how to arrive at your VAT threshold. We recommend that you also visit the Federal Tax Authority website https://www.tax.gov.ae/index.aspx for useful details on the VAT registration process.

Our business customers can pay VAT collected from their customers to the Federal Tax Authority by Electronic Funds transfer either through Digital Banking or at any of our branches.


Through Digital Banking:

  • Click on Send Money
  • Create a Beneficiary by selecting “Within UAE“ beneficiary option and enter the beneficiary name as Federal Tax Authority and enter your GIBAN in the IBAN field
  • Purpose of Payment  will be  auto populated  to “TAX – TAX Payment”
  • Fill in the amount to be paid and proceed to make the payment
     

Through Branches:

  • Submit the Electronic Funds Transfer request mentioning your GIBAN under the Beneficiary Account No. / IBAN fields
  • Choose the beneficiary bank SWIFT CODE as E868AEXXXXX
  • Select the Purpose of payment as “TAX – TAX Payment”
  • Fill in the amount to be paid and proceed to make the payment

Thank you for banking with RAKBANK and we assure you of our best services at all times.


Regards,
RAKBANK Team