With Respect to VAT Public Clarification ,the Federal Tax Authority classified labour accommodation into two categories for tax payment purposes. There will be instances where the supply of certain labour accommodation shall be a supply of residential property, and other instances where the supply of certain labour accommodation shall be a supply of serviced accommodation….
The Federal Tax Authority (FTA) released a public clarification on UAE VAT, VATP013, that sets certain principles to analyze certain expenses which amount to Reimbursement or Disbursement. The said public clarification discusses the applicability of VAT on reimbursement and disbursement of expenses charged by a taxable person on another person. Reimbursement and disbursement: It is…
There has been uncertainty regarding the VAT treatment of options supplied in return for premiums specifically, whether they are exempt or taxable for VAT purposes.The latest public clarification issued by the Federal Tax Authority (FTA) vide clarification No: VATP014 discusses the VAT treatment of financial options and options premiums. Option And Option Premium A financial…
VAT incurred on any costs which are used for a genuine business purpose e.g. food and drink provided during a business meeting shall be recoverable. If such food and drink is the purpose for attending an event, such costs will be considered to be entertainment costs, and the VAT incurred shall not be recoverable. Input…
In accordance with Article 41 of Cabinet Decision No. 52 of 2017 on the Executive Regulations of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (“Executive Regulations”), VAT on healthcare services may be zero-rated if certain conditions are met. Healthcare servicesAny Service supplied that is generally accepted in the medical profession as…
VAT Registration was introduced in the UAE on 1st January 2018. The Federal Tax Authority (FTA) is responsible for the administration and collection of taxes in the UAE. The UAE imposes VAT on tax-registered businesses on the taxable supply of goods or services at each step of the supply chain. A business must register for…
VAT on Supply of Education Services in the UAE The Federal Tax Authority (FTA) mandates that the main educational services and the goods and services associated with it will be zero-rated if it is supplied by the ‘qualifying educational institutions’ under VAT Educational Services guidelines. The following institutes come under the qualifying educational institute category…
VAT Voluntary Disclosure A Voluntary Disclosure is a form (VAT Form 211) provided by the Federal Tax Authority (FTA) that enables the taxpayers to voluntarily notify the FTA about the error or omission in a previous Tax Return, Tax Assessment, or Tax Refund application. This is applicable only if the differential amount (Tax paid minus…
In the wake of the global pandemic, COVID-19, many government authorities introduced major relief packages for companies in the UAE. These measures, including rent postponement of up to six months, aimed to address the challenges of Rent-Free During COVID-19 initiatives and support businesses in overcoming financial hardships. Let’s discuss the VAT impacts of the rent…
In the UAE, mandatory VAT registration is required for businesses whose value of supplies exceeds AED 375,000 in the previous 12 months or is anticipated to exceed this amount in the next 30 days during the current financial year. For businesses with supplies or taxable expenses exceeding AED 187,500 in the previous 12 months or…
