Khaleej Times

Electronic services includes supply of software, cloud services, web hosting, distance learning etc.

With Corporate Tax on the anvil in the UAE, transfer pricing discussions are gaining traction amongst the business community. Transfer pricing is generally applicable on international transactions. Such a generic understanding should not blindside and mislead the UAE businesses which are not engaged in international transactions.

ATP029 states that reverse charge mechanism applies only to goods and not to services.

VAT is imposed on taxable supplies and deemed supplies made in the UAE by a taxable person.

A consistent global approach is yet to emerge on the categorisation of cryptocurrencies

Corporate Tax will not apply on an individual’s salary and other employment income for both the public and private sector; interest and other income earned from bank deposits or saving schemes will also not be subject to it

“When is VAT payable on a sale of laptop with a 5-years warranty and 90-days credit terms?” I asked the CFO of a construction company. “It is payable upfront at the time of sale.” the CFO replied. “Correct, even though the contract of sale remains valid (i.e. not completed) for the next 5 years to guarantee the quality of supply and the payment is due only after 90 days.” I replied, “Should th

A supplier is allowed to claim back, from the FTA, the excess output tax charged on a tax invoice in prescribed scenarios

For the last 5 years, businesses are evolving along with the taxation regime in the UAE. Value Added Tax (VAT), excise duty, Economic Substance Regulations (ESR), transfer pricing and the upcoming corporate tax (CT) are some of the significant disruptions for businesses requiring a dedicated tax strategy.

Dubai - The supply of preventive and basic healthcare services and related goods and services, as specified in the VAT executive regulations are zero-rated.

VAT is imposed on taxable supplies made in the UAE by a taxable person.

Since the announcement of corporate tax, terms like BEPS, OECD, Pillar 1, Pillar 2 etc. have become the buzzwords amongst the business and finance fraternity.

​Federal Decree Law has provided clarity on many other aspects of the corporate tax and a certainty on its implementation. The key features of the corp

Many marketplace operators would like to believe that they are only acting as an intermediary connecting the actual supplier and the actual recipients.

The UAE has also adopted the WTO principles of custom valuation.

Dubai - Rental companies have contended that VAT should not be applicable on Salik recovered by them from the customers.

Ever since the announcement of UAE Corporate Tax (CT), businesses and individuals alike also have a natural curiosity to understand its implications.

Let’s travel down the rabbit hole and discuss landmark tax issues Taxation is often considered as a mundane subject. Truth be told, taxation is as fascinating as Alice’s wonderland if one delves deep into tax interpretations. In this week’s ‘Tax Conversations’, let’s travel down the rabbit hole and discuss landmark tax issues.

Jewellery prices are almost 15 per cent cheaper in the UAE, says expert

Excise tax is inter-alia applicable on specific goods produced within the UAE Excise Tax in the UAE was introduced three months before the Value Added Tax (VAT) as it is applicable on limited items and companies often miss out to understand its implications.

Dubai - A person is said to have ‘funded’ a discount if that person has borne the cost of such discount

The argument to determine the place of supply of artistic services has been used by actors to protest tax demands in their home countries

Failure to apply for de-registration within 20 business days attracts a penalty of Dh10,000

FTA’s team has worked for over two years, assimilating the suggestions of all stakeholders and global best practices, to introduce a seamless and proactive digital services

It will come into effect upon the publication of the decree law in the official gazette

A ‘taxable person’ refers to such person who are VAT-registered or obligated to get VAT-registered.

Import of goods from outside UAE into a free zone are not subjected to custom duty.

Would you accept an invoice which is not titled as ‘Tax Invoice’?, I asked the audience during a tax seminar. “Absolutely not”, a participant replied confidently.

VAT is applicable on the supplies made by a VAT-registered person in the course of business for consideration.

AAn expert explains the process in detail and what can and cannot be done online, and which procedures require NRI's to travel to India

Remuneration received by individuals to perform director’s functions will be outside the scope of VAT

A clarification by the tax authorities would help businesses understand the scope of excise tax and any exceptions applicable to the fresh drink producers.

Taxability of hotel cancellation charges, in particular, has been a complex issue internationally, and different countries have different tax positions on the issue

Businesses will need to maintain documents and records for at least seven years

Dubai - If a non-resident supplier is already VAT-registered, a question arises as to who should discharge the VAT responsibility - the actual supplier or the UAE-resident recipient?

Ignoring tax compliance could not only be financially harmful but also impact the business continuity

It would be helpful if a business can recover input credit on the fixed monthly rental without monitoring the actual usage and forfeit the VAT credit on the excess usage, if any.

The most significant tax development in 2022 was the announcement of corporate tax

“But 100 per cent of my supplies are zero-rated. Isn’t VAT registration required only when VAT is payable or recoverable? I am neither recovering nor want to recover any VAT input credit”, the owner of a free zone service company asked me.

Written agreement concerning the supply of goods or services, between two VAT-registered persons, could be regarded as a tax invoice for recovering input credit

FTA has confirmed its keenness for intensified market inspections across all the emirates.

Companies operating in Designated Zones often have refund positions in their VAT returns, and the administrative penalties imposed on such companies were automatically settled against the refund balance

Dubai - VATP012 is a trade facilitating measure and addresses a different business situation.

Business owners should evaluate the implications of the recent changes before they come into effect on January 1, 2023

The FZ companies will need robust accounting records for allocating expenses and determine net income from each of the above transaction streams.

The global economy, regulatory laws and technological developments will pose interesting challenges

Tax experts in the UAE said employees will not directly be impacted by this new taxation but there could be an indirect impact if the corporate, in a knee-jerk reaction, raise consumer prices.

Businesses often forgo input VAT credit if the purchase/expense invoice is more than 6 months old (or, 2 months in the case of monthly tax periods). Needless to say, such a tax position results in a financial loss to the business. Alternatively, the buyers could strain the business relations with the suppliers by asking to reissue a current dated invoice.