As per the public clarification issued by FTA , the supply of educational services (Link: https://www.aviaanaccounting.com/vat-on-education-services/), including printed or digital reading material related to….
An option or a financial option, gives the buyer a right to buy or sell an underlying financial instrument at a specified price prior to or on a specified future date. The specified price is known as the strike price and is set with….
FTA’s clarification on Donation, Grant and Sponsorship
A taxable person may receive payments in the nature of donations, grants and sponsorships. In order to determine whether such donations, grants or sponsorships are subject to VAT, one needs to identify….
FTA’s clarification on Date of Supply of Director’s Fees
The date of supply prescribes the point in time when a VAT Registrant needs to account for VAT. The date of supply is determined either as per the general rules or the special rules, depending on whether there will be periodic….
Clarification issued by FTA on Labour Accommodation
Labour Accommodation can be provided through residential building or serviced accommodation. Both are treated different as per VAT rate law. The residential building is exempt from VAT and serviced accommodation is charged….
Under the VAT regime in the UAE, not all goods qualify to be sold under profit margin scheme. The list of such goods is very specific. However, these goods may only be supplied under the scheme where they were subject to VAT before the supply….
Here’s how VAT will affect your household financially
Value Added Tax – popularly known as VAT – is all set to be part of the daily parlance in the UAE. Scheduled to be implemented from January 1, 2018, this new system will further strengthen the nation’s revenue….
The proposed value-added tax (VAT) at a standard rate of five per cent is unlikely to have a major impact on general bank customers in the UAE, but it will negatively affect banking sector margins from next year onwards, said experts…..
UAE resident alert: 5% VAT is officially coming by Jan 1, 2018
Policy makers in the six-nation Gulf Cooperation Council are aiming to introduce a 5 percent value-added tax at the start of next year, despite administrative and technical obstacles, a senior United Arab Emirates finance official said on…..
Clarification on re-imbursement and disbursement of expenses
With respect to re-imbursement and disbursement of expenses, FTA has issues a clarification on its treatment. In addition to that, FTA also issued clarifications vide circular No.: VATP013 with respect to what constitutes….
FTA’s clarification on Importation of goods by agent
A VAT registered owner of the goods may request another VAT registered person (“importing agent”) to import goods on behalf of the former. This will happen when the person importing the goods is, for example, an agent of the owner of the goods,….
Farm houses satisfy the conditions to be treated as a residential building therefore, qualify as zero rated supply. But, the farm house must be occupied as their principle place of residence. Where one does not satisfy the condition principle….
Clarification issued by FTA on Entertainment Services
Entertainment Services here means those expenses which are incurred for activities which are meant to entertain personnel. One of the examples to understand this is free staff parties, food on office, free gifts given away etc. The FTA is of the….
Article 59 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”) prescribes the requirements of a tax invoice and the circumstances in which one must be issued….
A prolonged period of low oil prices coupled with the currency fluctuation has impacted retail and tourism to some extent, however mall developers remain confident about the market in the medium to long term…..
With just less than a year to go to the planned date of the implementation of the five per cent value added tax (VAT) in the UAE, authorities are seeking to register all companies with an annual revenues exceeding $100,000 (Dh367,300) for the game-changing tax reform for the entire GCC….
Clarification on sale of business as going concern
With respect to sale or transfer of business asset as a going concern, FTA has issues a clarification on 20 th August, 2019 vide Clarification No: VATP015. As per the UAE VAT law, if a business is transferred or sold and is….
As per the VAT Executive regulations, the transport qualifies for zero-rating under Clause 4 of Article 45 of the Federal Decree-Law No. 8 of 2017 on Value Added Tax. This transport includes the supply of a bus or train….
Clarification issued by FTA on Use of Exchange rates
As per the VAT decree Law, the invoice should always be in UAE Dirham. It means that even if the transaction is done in currency other than UAE Dirham then said amount has to be converted into UAE Dirham….
FTA issued clarification on time period for Input Tax Recovery
The Federal Tax Authority of the UAE issued a public clarification with respect to article 55 of the Federal Decree-Law No. 8 of 2017 on VAT Law that prescribes the time-period within which input tax should be recovered by a taxable person. It also clarifies the alternatives available if the input tax is not recovered within the…
Compensation Payments are for any loss, breach of contracts, omission etc. This type of expense occurs in the normal course of business only. Recently, FTA has issues a clarification vide no.: VATP001, on VAT treatment on compensation…..
Watch out for indirect VAT costs on property deals
With the value added tax (VAT) kicking in on January 1, 2018, end-users in Dubai are confused whether to pre-pone their property purchase decision or to continue paying rents and wait for sales prices to bottom out…..
VAT in the UAE and the challenge with financial services
Value added tax is definitely coming to the UAE and an important question is how financial services will be treated. All 160 or so countries that levy VAT have struggled with this issue and the approaches…..
The introduction of a five per cent value added tax in the UAE from next year is not only a righ step in right direction to diversify revenue generation sources, but the move will also help multinational and foreign companies operating in the emirate to skip higher rate in their home country…..
Policy-makers in the six-nation Gulf Cooperation Council (GCC) are aiming to introduce a 5 per cent value-added tax at the start of next year despite administrative and technical obstacles, a senior…..