2. The following items are going to be exempted from the ambit of VAT:
- Local Transport.
- Residential Real Estate, including long term leases on residential properties.
- 100 other Essential items.
3. Registration Criteria for VAT
- Taxable person having revenue of more than AED 375,000 in year shall be liable to register for VAT.
- VAT Registrations shall begin in Third Quarter of 2017.
4. There shall be no Input Tax Credit available on the Custom Duty paid by taxable person.
5. The rules of Place of Supply shall be applied for test of applicability of VAT.
6. Conditions for availing the input tax credit
- Recipient of Supply must be a taxable person (i.e. end consumer cannot claim VAT refund or credit)
- Tax should be charged correctly.
- The recipient of the supply must supply the documentary evidence.
- The goods and services received are for making further taxable supplies (i.e. only business which make further sale shall be entitled to reclaim credit on VAT Paid)
- VAT input tax credit can be claimed only on the amount paid or intended to be paid in 6 months by the recipient.
7. VAT Returns shall be filed on a quarterly basis in UAE.
Source: Multiplier Event for awareness of VAT in UAE, held by Ministry of Finance on 21st March 2017.
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For End to End Service, Contact our Consultants at:
CA Hussain Indorewala – 050-3515421
Shabbir Babrawala – 055-1598152