Notice of Tax Rule Changes in United Arab Emirates
The United Arab Emirates Value Added Tax (“VAT”) applies to the supply of cross-border digital services by non-resident service providers to United Arab Emirates customers. As such, beginning on November 1, 2020, Alibaba Cloud is required to charge the United Arab Emirates Value Added Tax (“United Arab Emirates VAT”) at a rate of 5% on electronic services provided remotely to United Arab Emirates individual customers. Alibaba Cloud will not be required to charge United Arab Emirates VAT on services provided to United Arab Emirates enterprise customers who have filled in the United Arab Emirates Tax Registration Number (“TRN”) to their account. For enterprise customers have not filled in the TRN to their account, Alibaba Cloud will still charge the United Arab Emirates VAT at a rate of 5%. All VATs that are collected from United Arab Emirates customers will be remitted to the United Arab Emirates tax authority.
From Oct.26, 2020, Alibaba Cloud will prompt United Arab Emirates enterprise customers (the enterprise main account that pays directly to Alibaba Cloud, Reseller’s end users and sub-accounts associated to enterprise main account are not included) that do not fill in the TRN to complete it during the purchase process (It can be skipped). You can also to go to the tax number management page at billing management and fill it in by yourself.
If you have any further questions, please feel free to contact your Alibaba Cloud business representative or our support team by opening a support ticket through the console.
Thank you for your ongoing support.