Update on Basic tax Information Bulletin – Automotive Sector

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…

Update on Basic tax Information Bulletin – Artists and Social Media Influencers

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…

Setting Up Offshore Companies in The UAE

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…

UAE Value Added Tax (VAT): Update

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…

Amendment to UAE commercial companies law

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…

UAE Value Added Tax (VAT): Update

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…