VAT (Value Added Tax)

The United Arab Emirates published its Value Added Tax decree law on 27th August 2017, paving the way for the introduction of the indirect tax on 1st January 2018. The standard VAT rate will be 5%, with a nil rate for certain goods.

Some UAE VAT law:

The key elements of the new law cover:

• 5% on taxable supplies and imports

• VAT registration requirement threshold (Dh 375,000) and calculations, including voluntary registration option (if revenue above Dh 187,500)

• Setting up VAT groups

• Determining the date of supply for VAT purposes

• Place of supply of goods and services rules

• VAT nil-rating on the supply of goods and services within other GCC states which have implemented VAT

• Exemptions on supply of service rules i.e. taxable where supplied

• Role and impact of tax agents

• Determining the value of taxable supplies, discounts and imports

• Mixed supply rules

• Supplies subject to zero rating

• Reverse charge rules, including imports and movements from other GCC VAT implementing rules – more details to be provided in Executive Regulation

• The right to recover input VAT, including import VAT incurred on goods subsequently moved to UAE (onward supply relief)

• Credit notes and bad debts

• VAT invoice requirements, FX treatment and requirements for date of issuance

• Tax credits, carry forwards and when refunds may be made

• VAT recovery for non-resident businesses and consumers

• Penalties

This course covers:

1. Overview of VAT

2. Registration

3. Place of Supply

4. Date of Supply

5. Valuation

6. Input Tax

7. Capital Asset Scheme

8. Import and taxability under Reverse Charge

9. Exempt and zero-rated Supply

10. Export

11. Impact on Designated Zones

12. Records

13. VAT Returns and Payment of VAT

14. Offences and Penalties