Electricity bills subject to 5 percent VAT starting January

Water and electricity bills in the UAE will be subject to the 5 percent value added tax from January 1.

Abu Dhabi Water and Electricity Authority (ADWEA) has instructed its Abu Dhabi and Al Ain distribution affiliates to address consumers on the starting date of VAT application.

ADWEA said that it has taken all necessary measures to add the tax to January bills in line with Federal Law No 8 for the year 2017, which stipulates that water and electricity are among the commodities and services subject to the levy.

A 5 percent VAT is set to come into force in the UAE and Saudi Arabia on January 1st, with the rest of the GCC states following by the beginning of the following year.