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VAT on my Loan that i took 3yrs ago?

Hi can anyone advise me what to do? I was surprised to received my statement today from dunia. I had a loan with them since march 2015, for 36 months, my last payment was supposed to be this February, when i received my statement last dec my outstanding balance was 1770. Now when i received it its 1843.

I was shocked! How come my loan that i took from them was 3 years ago! And VAT was implemented this year! Its ridiculous! I was expecting to finish my loan next month and pay 843 only! What funny was their agent called me several times last december to convince me to top up my loan! And nobody bother to inform me to settle my loan because they will add a VAT!

Dubai | 👁 990 | Posted February 8, 2018 | Share on Facebook | Twitter | Google+

| Modified: February 8, 2018 | Author:

16 Comments

Aomame_85 1 year ago

I got my new statement now with dunia. They said it was an error.. was relieved!

asianmexican 1 year ago

dunia well theres your problem...

wazaaaaaaa 1 year ago

invoice date is important here, if they invoiced you for the car on 31/21/2017 but you took the car on 1/1/2018 guess what, no VAT! :-)

Aomame_85 1 year ago

Almost done! After three years that why i got furious when i saw my statement for this month. I was so excited to finished it next month. But they add 1k so its a big no no. After all this troubled i surely learned my lesson!

Aomame_85 1 year ago

Well i called them today and they told me that my updated statement will send to my email today and there is an error on their system. I guess they received tons of call today since the guy i spoke with talked like a machine and didnt bothered to explain much. Cross finger!

Aomame_85 1 year ago

I will pay it though if i have no choice but honestly in this situation 1k is really matter to me. Its just that ridiculous that they will do that.

Aomame_85 1 year ago

Oh im sorry! I hope im joking how i reAlly wish i am! Coz 1k for me in this situation is a no joke!

ILoveDubai 1 year ago

Why do people up vote a lie :)

ILoveDubai 1 year ago

Of course they did not add VAT to his loan.

ILoveDubai 1 year ago

Of course they have not added VAT to your loan. You must be joking.. right?

ayyyyyyyyyo 1 year ago

homie just pay it and steer away from trouble

gutterandstars 1 year ago

Dubai eye had a discussion about VAT with reference to cars though...turns out, even if you sign some contract pre 2018 but the car delivery happens in 2018...u owe bvat

sol1517 1 year ago

VAT is not applicable to loans (thus mortgages), easy as that. I doubt a bank is so dumb about VAT regulation. If I were you I'd double check any late payment fees.

BONGOmerchant 1 year ago

I cant find the underlying regulations but this guy says loans are exempt from VAT: http://m.gulfnews.com/business/economy/vat/vat-s-up-babu-your-uae-vat-questions-answered-1.2144163 However, he also says that VAT will be applied to phone recharge cards, which is incorrect - as specified in the article to which he links!

UBROKEMYFRIDGE 1 year ago

Did it specifically mention VAT charge? Logically there should be no VAT charged on loans, yes, there can be a 5% on the fee when applying for a loan, but you had done this 3 years ago and hence shouldn't apply. Also check this from October: http://whatson.ae/dubai/2017/10/everything-residents-need-know-vat-uae/ "Financial services and life insurance Certain financial services will be exempt from VAT, such as loans, mortgages and life insurance products, and Islamic banking will be treated in the same way as standard banking. Yet-to-be-published Executive Regulations will clarify further, however, all fees charged by financial institutions are expected to attract VAT at the standard rate of five per cent." Again, please make sure to check the statement and see if the next payment amount specifically mentions VAT, also ring them to check.

burksterdxb 1 year ago

Unfortunately, it's perfectly valid. Same way that du and Etisalat monthly payments will be added with a VAT etc. Congratulations on paying off your loan. Must be a great feeling!


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