Withdrawing cash from another bank will cost you. Previously, customers have been charged Dhs 2 for withdrawing cash from a bank that is not their own. Now, the bank will charge an extra five per cent VAT on top of that Dhs 2, which translates to 10 fils per transaction.
You will not be charged according to the amount you withdraw, but the charge that is already in place for using a different ATM.
It is likely that from 1 January 2018, banks will increase their transaction fees to up to Dhs 5, with a customer-charged VAT of 25 fils.
Mayank Sawhney, director at MaxGrowth Consulting said, "The VAT will be payable only on the fee charged by the banks which is a nominal amount of Dhs 2 per transaction in general. So after applying five per cent VAT, it will become Dhs 2.10 from 1 January 2018 onwards. In essence, it does not hit customers' pockets because even if you do 50 such transactions in a month, your total cost is going to rise maximum by Dhs 5."