No VAT on withdrawals from other banks’ ATMs in UAE

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The VAT will be payable only on the fee charged by the banks, which is a nominal amount of Dh2 per transaction. While many residents in the UAE are struggling to understand how the value-added tax (VAT) will impact the way they interact with their banks, experts say that there is no reason to be alarmed.

Customers will not be charged five percent VAT on the amount withdrawn from ATMs other than their own bank, rather only on the Dh2 fee charged by the banks, according to tax experts. The five percent VAT will be levied on the Dh2 fee charged by banks when withdrawing from ATMs of other banks – which translates to around a nominal 10 fils per transaction.

This is an excerpt from a Gulf News article which you can read here