The impact of Public Clarification no. VATP001 on the Banking industry has been saved
The impact of Public Clarification no. VATP001 on the Banking industry
With the release of Public Clarification no. VATP001 on the Value Added Tax (VAT) treatment of compensation-type payments (the clarification), the Federal Tax Authority (FTA) of the United Arab Emirates (UAE) has sparked a discussion within the banking industry on the clarification’s applicability to similar penalty-type fees charged by the banks to their customers.
Deloitte has prepared a thought piece on the applicability and the impact of the Public Clarification to the banking industry, where payments resembling compensation payments are a common occurrence.