Frequently Asked Questions on Value Added Tax

Value Added Tax(VAT) FAQs:

What is VAT?

Value Added Tax(VAT) is an Indirect Tax introduced in the UAE with effect from 1 January 2018. This is applicable to all products and services(except those are specifically exempted by the Federal Tax Authority).

At what percentage VAT is levied?

VAT will be levied at the rate of 5% on transfer fee and other commission charges for all products and services offered by GCC Exchange.

On what amount 5% VAT shall be charged?

5% VAT shall be charged on the transfer fee and commission(including other charges) collected from the customers.

For remittance, will the rate of VAT vary for different countries?

VAT is levied at the rate of 5%. For ease of operations, our revised rates w.e.f 01/01/2018 are inclusive of VAT. Please Click Here to know our revised charges.

Is VAT applicable on the currency Sale/Purchase.

No. There is no VAT on these type of transactions

How will I know what is the VAT amount collected from me

Our Tax invoice issued at the time of completing a transaction carries the VAT collected and our TRN number

Is VAT is applicable to instant Money Transfer services like GCC Remit, Moneygram, Xpress Money, Instant Cash, Transfast etc..?

Yes, VAT is applicable for Instant Money Transfer facilities as well.

Are tourists subject to VAT?

Yes, tourists are also subject to VAT.

Is VAT applicable to Free Zone Visa holders or entities registered in the Free Zone?

Yes, VAT is applicable to Free Zone visa holders and entities registered in the Free Zone. There is no exemption on services hence VAT is chargeable at the regular rate of 5%.

Are UAE Nationals subject to VAT?

Yes, VAT is applicable to all residents of UAE, including the UAE Nationals.

Is there any exemption on VAT to the politicians, political bodies, Royal family or Ambassadors of a foreign country?

No.

How does VAT affect GCC Exchange WPS transactions?

VAT is levied on all forms of fee or charges for the following:

  • Payroll card issuance
  • WPS per employee
  • Card replacement
  • Withdrawal(applicable only for transactions on Bank ATM’s)
  • Pin Issuance(Applicable only for Open Loop Cards)
  • Pin Reissuance(Applicable only for Open Loop Cards)
  • Balance Inquiry(Applicable only for Open Loop Cards)
  • Statement(Applicable only for Open Loop Cards)
  • Wrong dispute on card transactions
What is Tax Registration Number(TRN)?

Tax Registration Number(TRN) is an identification number issued by Federal Tax Authority(FTA) to all taxpayers in the UAE.

What is the TRN of GCC Exchange?

TRN of GCC Exchange is 100025628700003

In case of any VAT related queries, whom should I contact?

VAT related queries can be addressed to vat@gccexchange.com

Should I disclose my VAT –TRN to GCC Exchange.

Yes, every corporate or individual who has received TRN should intimate us the same for updation in our records.

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