The Ministry of Finance and First Abu Dhabi Bank present the Second Generation of e-Dirham (e-Dirham G2), an easy and safe method of electronic payment and collection of revenue for both government and non-government fees.
Through the latest technologies, they offer world-class secure and effective payment & collection schemes. The e-Dirham G2 system ensures the best coverage, making it an integral electronic payment system in the United Arab Emirates.
This new system makes transactions more convenient facilitating the collection of government and non-government service fees through the following:
A Comprehensive Payment System for Prepaid Cards and Credit Cards.
EFTPOS: Payment via counter.
EIPG: Online Payment and eCommerce.
eDebit and eDirect: Direct debit from bank accounts.
eMobile: Payment via mobile phones.
eKiosks: Payment via an electronic kiosk.
eWallets: Payment through a virtual wallet.
What is Value Added Tax (VAT)?
Value Added Tax (or VAT) is an indirect tax. Occasionally, it might be referred to as a type of general consumption tax. In a country that has a VAT, it is imposed on most supplies of goods and services that are bought and sold.
VAT is one of the most common types of consumption tax found around the world. Over 150 countries have implemented VAT (or its equivalent, Goods and Services Tax), including all 29 European Union (EU) members, Canada, New Zealand, Australia, Singapore, and Malaysia.
VAT is charged at each step of the “supply chain”. Ultimate consumers generally bear the VAT cost while Businesses collect and account for the tax, in a way acting as a tax collector on behalf of the government.
A business pays the government the tax that it collects from the customers while it may also receive a refund from the government on tax that it has paid to its suppliers. The net result is that tax receipts to the government reflect the “value add” throughout the supply chain. Below is a simple, illustrative example explaining how VAT works (based on a VAT rate of 5%):
For more information:- https://www.mof.gov.ae/en/resourcesandbudget/pages/vatquestions.aspx
