The Electricity and Water Authority (EWA) officially announced that its services will be subjected to the 5% Value Added Tax (VAT). This announcement was through e-mails and SMS messages to its subscribers. EWA’s VAT registration certificate was also attached in the email and widely circulated through various social media.
Sources in EWA told “Albilad” that the 5% VAT includes all EWA’s services, electricity and water, except for municipality services and the down-payment amount paid when opening a new account. They assured that it includes all supported and not supported accounts as well as citizens and residents.
Sources also stated that despite the announcement states that the 5% VAT will be applied starting from January 2019, it might not be in force this month as it will take time to set up all necessary IT procedures and preparations and calculations. Sources assured subscribers will be notified when all is set and systemized. Then the 5% VAT will be calculated retroactively.