VAT Accounting There is some confusion within the construction industry about when VAT should be accounted for, given the number of documents and certificates issued by construction companies. VAT for contracts containing milestones or staged payments will need to be accounted for as soon as payments are received. When to account for output on supplies:… Read More »

Latest VAT Updates VAT applicability on Free zones: Supply of services by all free zone companies are taxable. Supply of goods between designated zones are not taxable subject to the terms and conditions specified in the Executive Regulations. Designated zones are likely to be fenced free zones and therefore all free zone companies supplying goods… Read More »

VAT Basics All businesses having turnover exceeding AED 375,000 shall register for VAT. They must charge their customers VAT on the invoice amount, file quarterly returns and pay the VAT collected to the Authority within the stipulated time. Standard rate of VAT in UAE is 5%. In addition, some supplies are Zero rated and some… Read More »

VAT Basics All businesses having turnover exceeding AED 375,000 shall register for VAT. They must charge their customers VAT on the invoice amount, file quarterly returns and pay the VAT collected to the Authority within the stipulated time. Standard rate of VAT in UAE is 5%. In addition, some supplies are Zero rated and some… Read More »

The Cabinet decision states that a fine must be no less than Dh500 and no more than triple the value of the tax on the transaction in question. In the case of a business failing to keep the required records and other information specified in the tax laws, the business will be fined Dh10,000 the… Read More »

Registration process, the first step towards complying with tax procedures and laws of the impending landmark excise tax reforms will commence from Sunday, the Federal Tax Authority said on Thursday. The FTA, the UAE government entity responsible for administering, implementing, and collecting federal taxes in the Emirates, said all taxable businesses would be required to… Read More »

Should I continue to rent a property or buy? It is the million-dirham question playing on the minds of expatriates in the UAE. Many people arrive in the Emirates thinking they will do a two to three-year stint but before they know it, they start to see the country as home. Whether you ultimately decide… Read More »

What we do know today about VAT is this — on the recommendation of the World Bank and the International Monetary Fund, it has been introduced at the rate of 5 per cent in the country. Now, this is quite modest by global standards, and won’t have any inflationary consequences on the economy, or cause… Read More »

Zero-rating of value added tax applies when goods and services are being exported to outside a VAT-implementing GCC state, as well as to international transportation of passengers or goods including a transfer starting or ending in the UAE or passing through its territory. Air transfer of passengers in in the UAE also incurs zero rates… Read More »