Value Added Tax (VAT) is generally charged on the full value of goods and services. However, for businesses dealing in second-hand goods, antiques, and collector’s items and article 53 goods, charging VAT on the entire selling price can lead to tax cascading –where VAT is effectively charged multiple times on the same item. To address this, the Federal Tax Authority (FTA) introduced the Profit…
The UAE government has introduced a streamlined way of treating Metal Scrap under UAE VAT Law. Cabinet Decision No. 153 of 2025 changes the tax rules for buying and selling metal scrap between VAT registrants in the State. Effective from 14 January 2026, businesses registered for VAT in the UAE must follow these updated rules…
Introduction The UAE continues to refine its tax framework to align with international best practices and enhance compliance. On 1 October 2025, Federal Decree-Law No. 16 of 2025 was issued, introducing significant amendments to Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT). These changes take effect from 1 January 2026, marking another…
The Federal Tax Authority (FTA) has released the updated VAT Guide on Input Tax Apportionment (VATGIT1) in September 2025, this update brings significant structural changes, introduces new concepts such as the Specified Recovery Percentage (SRP), and aligns the guidance with the latest VAT and tax procedure regulations. Businesses registered for VAT in the UAE should…
The regulation of Tax Invoices and Tax Credit Notes is a cornerstone of the UAE’s Value Added Tax (VAT) system, ensuring transparency, accountability, and proper tax collection. Articles 59 and Article 60 of the Executive Regulation of Federal Decree-Law No. 8 of 2017 define the requirements for these critical documents. These articles have undergone recent…
In the ever-evolving landscape of UAE VAT legislation, clarity and compliance remain paramount. The Federal Tax Authority (FTA) has released Public Clarification VATP044, addressing a pivotal issue – the issuance of tax invoices and the entitlement to input tax recovery for Concerned Services. This clarification is instrumental for businesses engaged in cross-border transactions, especially where…
Reverse Charge Mechanism UAE 2025 for Precious Metals and Stones The United Arab Emirates continues to refine its tax framework to align with global best practices and enhance compliance. A significant step in this direction is the introduction of Cabinet Decision No. 127 of 2024, which revises and expands the scope of the Reverse Charge…
The growing prominence of cryptocurrencies has raised important questions regarding their tax implications, particularly in the context of cryptocurrency mining. Recognizing this emerging issue, the Federal Tax Authority (FTA) has issued a detailed clarification outlining the VAT (Value Added Tax) treatment of mining activities under the UAE’s taxation framework. Definition and Scope of Cryptocurrency Mining…
Barter Transactions Under UAE VAT involve the exchange of goods or services without monetary consideration, which can create complex VAT implications. Recognising this, the Federal Tax Authority (FTA) issued Public Clarification VATP042, outlining key rules on valuation, invoicing, and compliance. This article summarises essential guidance to help VAT-registered entities navigate Barter Transactions Under UAE VAT…
Banks and exchange houses (collectively referred to as financial institutions) often engage with non-UAE banks using the SWIFT communication system. In this process, international bank charges are incurred, and under the updated guidance where VATP041 Replaces VATP036, these charges now fall under more clearly defined VAT treatment. As these charges pertain to services provided by…
