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 Box 1 – (Standard rated supplies)

  • Decrease in Output Tax as a result of VAT Bad Debt Relief to be reported under Adjustment column of Box 1
  • Decrease in Output tax of Seller as a result of sale of taxable commercial property in UAE wherein VAT has been directly paid by Buyer to Federal Tax Authority to be reported under adjustment column of Box 1.

Box 3 – (Supplies subject to the reverse charge provisions)

  • Apart from reporting Import of Services, the only scenario where purchase of goods from outside UAE is to be reported in this box is when the movement was not declared via UAE Customs for any reason.

Box 5 – (Exempt supplies)

  • Employers must evaluate reporting of provision of Residential Accommodation (non-serviced apartments) to employees for a consideration* as Exempt Supplies in Box 5.

Adjustment in Box 9 – (Standard rated expenses)

  • Negative adjustment to Input Tax as a result of VAT Bad Debt Relief claimed by Supplier must be reported under ‘Adjustment Column’ in Box 9 of the Receiver of supplies.
  • End of year adjustment to Input VAT as a result of input tax apportionment annual wash up computation to be reported under ‘Adjustment Column’ in Box 9.
  • Adjustment to Input VAT as a result of Capital Assets Scheme computation to be reported under ‘Adjustment Column’ in Box 9.

*Please refer Section 3.6 of UAE VAT Guide on Real Estate (link provided below) to determine what comprise as consideration with respect to Residential Accommodation provided to employees.

https://tax.gov.ae/en/vat/guides-listing

Contacts

You may email us or can contact any of our team members relating to your queries on this subject:

Stany Pereira
Managing Partner
stany@pkfuae.com

Sarika Dhameja
Director – Tax Services
sdhameja@pkfuae.com

Mradul Gupta
Manager
mgupta@pkfuae.com

Rahul Shah
Assistant Manager
rshah@pkfuae.com

Disclaimer:
This document has been prepared as a general guide. It is not substitute for professional advice. Neither PKF UAE nor its partners or employees accept any responsibility for loss or damage incurred as a result of acting or refraining from acting upon anything contained in or omitted from this document.

PKFUAE is a member firm of the PKF International Ltd family of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member or correspondent firm or firms.