Value Added Tax implementation in the United Arab Emirates | HSBC UAE
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Value Added Tax

Value Added Tax implementation in United Arab Emirates



Dear Customer,

The UAE has issued Federal Decree Law No. (8) of 2017 on Value Added Tax (VAT) ("VAT Law") which is now implemented in the UAE effective 1 January 2018 at a standard rate of 5%. Wherever applicable, VAT will be collected on taxable supplies of goods and services in the UAE.


What does this change mean for you?


You do not need to take any action, however, we would like to draw the following matters to your attention:

1. Collection of VAT: In accordance with the new VAT Law, HSBC will be required to charge and collect VAT on certain services and pay it to the Federal Tax Authority ("FTA"). Where applicable, fees and charges in our Schedule of Services and Tariffs are displayed as inclusive of VAT. We remain in close contact with the regulatory authorities and will update our customers on any changes in due course.


2. Personal Banking General Terms and Conditions (UAE): Our Personal Banking General Terms and Conditions has been amended to include a new clause 1.11 effective from 1 January 2018 as set out below:
"1.11 Do I have to pay taxes?
You will be required to pay the amount of any tax or other duty imposed by the Authorities from time to time on any Services we provide to you. This may include, but is not limited to, any value added taxes, or similar consumption taxes, and any withholding tax. We reserve the right to collect and deduct such applicable taxes or duties from you and/or any of your Accounts at any time. The details of any such taxes where applicable can be found in the Schedule of Services and Tariffs and/or the relevant product documentation."


For further information on the VAT Law you may also refer to following websites:

Federal Tax Authority:

https://tax.gov.ae/

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Ministry of Finance:

https://www.mof.gov.ae/En/

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Thank you for banking with HSBC.

Yours sincerely,


Retail Banking and Wealth Management
HSBC Bank Middle East Limited



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This link may allow you to access a non - HSBC website. HSBC Bank Middle East Limited has no control over the linked website and is not liable for your use of it.

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This link may allow you to access a non - HSBC website. HSBC Bank Middle East Limited has no control over the linked website and is not liable for your use of it.

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This link may allow you to access a non - HSBC website. HSBC Bank Middle East Limited has no control over the linked website and is not liable for your use of it.

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This link may allow you to access another HSBC Group website. Please read the terms and conditions of the linked website, which may differ from the terms and conditions of HSBC Bank Middle East Limited website.