The UAE MOF has updated the details of the VAT FAQ on their website
Another step closer to VAT implementation
On 9 July, the United Arab Emirates (UAE) Ministry of Finance (MOF) updated the Value Added Tax (VAT) FAQ section of their website. The full details are available on this link.
The update provides useful written confirmation on a number of points discussed at the MOF VAT awareness sessions including verification of:
- The sectors exempted and treated as zero-rated
- The rules in respect of invoicing and the proposed transitional rules
- Confirmation that no special schemes will be available for SMEs, but that there will be a provision allowing vendors of second hand goods to only charge VAT on the profit margin
- Confirmation that VAT grouping will be available
- Confirmation that margin based financial products will be exempt and that insurance (except life insurance) will be subject to VAT
This update is a further sign of commitment to the implementation of VAT and businesses should continue to prepare accordingly for the go-live date of 1 January 2018.
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