Federal Tax Authority (‘FTA’) has issued a basic tax information bulletin addressing specific issues relating to automotive sector from UAE VAT laws perspective. The key takeaways from such bulletin have been mentioned below: Applicability of VAT on automotive sector: It has been clarified that the following supplies, amongst others, made by businesses in automotive sector…
Federal Tax Authority (‘FTA’) has issued a public clarification which discusses the conditions which must be met in order to benefit from the Bad Debt relief scheme. The key takeaways from the said public clarification have been mentioned hereunder: Issue: Where a VAT registered supplier supplies goods or services to its customers but is not…
Federal Tax Authority (‘FTA’) has issued a basic tax information bulletin addressing specific issues relating to artists and social media influencers from UAE VAT laws perspective. The key takeaways from the bulletin have been mentioned below: Definition: ‘Artists’ have been described as individuals who make supplies in their personal capacity as performers, singers, dancers, stage…
Due to the traditional image etched in people’s minds of shady tax holiday islands (where secretive bankers do clandestine deals with international smugglers carrying sacks of ill- gotten cash !!!!), offshore jurisdictions around the world and companies set up in such jurisdictions often get a bad reputation by association. Thankfully over the past decade, the…
Box 1 – (Standard rated supplies) For businesses with Fixed Establishment in UAE, the supply is to be reported in the Emirate where the fixed establishment which is most closely connected to the supply is located. For non-established businesses, the supply should be reported in the Emirate where the supply was received. Adjustment Column of…
VAT Public Clarification on VAT registration of ‘Sole Establishments’(VATP021) The UAE Federal Tax Authority (FTA) has issued public clarification in respect of VAT registration obligations of a natural person in respect of its sole establishments. Meaning of Sole Establishment/Sole Proprietorship A legal form of business; 100% owned by a natural person; Does not have a…
Background Federal Law by Decree No. 26 of 2020 (the Amendment Law or AL), published in the official gazette in September 2020 introduces a number of substantial changes to the Federal Law 2 of 2015 concerning Commercial Companies in UAE (Commercial Companies Law or CCL). The changes not only affect the foreign ownership rule, but…
VAT Public Clarification on “VAT – free” special offers (VATP020) The UAE Federal Tax Authority (FTA) has published VAT Public Clarification on promotional goods/services that are often marketed as ‘VAT-free’ special offers. Summary Many retailers are advertising their products with an offer such as “VAT-free”. Referring to such “VAT-free” special offers is misleading and contrary…
Real Estate is a complex industry worldwide witnessing various types of complicated transactions. Tax implication is one of the important factors that is considered before undertaking any Real Estate transaction. Below is gist of tax implications on Supply of commercial Real Estate located in UAE from UAE VAT Laws perspective. A commercial Real Estate has…
Financial modelling is a vital tool for key business decisions and is used to project the actual or estimated performance of a company, project, business, or any other financial investment. Financial models, typically prepared using MS Excel or equivalent, are based on assumptions regarding future events that drive earnings, expenses, profitability and the resultant balance…