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…
Time Frame For Recovering Input Tax In The UAE Public clarification (VPTP017) issued by the Federal Tax Authority (FTA) in respect of the time frame for recovering input tax in the UAE prescribes the time period for claiming Input VAT in UAE by a taxable person. The UAE VAT law states If the business is…
The Federal Tax Authority (FTA) in the UAE released a recent guide providing the procedures and scope for certain exceptions from VAT procedures. A VAT Administrative Exception in the UAE is a mechanism that offers registrants concessions or exceptions as allowed by the Federal Decree-Law No. 8 of 2017 on Value Added Tax (“Law”) or…
Overview of Value Added Tax (VAT) in the UAE Value Added Tax (VAT) was introduced in UAE on 1st January 2018. The Federal Tax Authority (FTA) is chargeable for all administrative and collection of taxes in the UAE. UAE imposes VAT on tax registered businesses on a taxable supply of goods or services at each step of…
