GAZT – General Authority of Zakat & Tax has announced that ATm services and loans will be free from VAT.
Interest or lending fees charged with an implicit margin for finance will be exempted from value added tax (VAT).
GAZT said that interest fees charged on Lonads, Credit Cards, Finance leasing, Hire Purchase, mortgages all are exempted from VAT.
Rumors about ATM withdrawals, the GAZT officials told the workshop that customers will not be charged for withdrawing or transferring money from their accounts using ATMs.
However, the 5-percent tax will be imposed on banks’ administrative charges such as the issuance of checkbooks, statements of accounts and safety deposit boxes and the customer will have to bear this expense.
Moreover, rental prices of residential properties, life insurance contract and issue or transfer of a debt security, equity security, or any other transferable document recognizing an obligation to pay a monetary amount to the bearer are also exempt from the VAT.