Trading and commodities in the United Arab Emirates has been saved
Trading and commodities in the United Arab Emirates
Your strategic advisor for indirect tax matters
The United Arab Emirates (UAE) has strong credentials in commodity trading, from its integral contribution to the old Silk Road to technical commercial innovations in present day trade. There are a wide range of participants and products in the market, and technological innovation has resulted in more complex and fast paced trade. The tax legislation may not address these complexities, which are often a result of rapid non-tax related developments. This has resulted in a range of potential risks areas for commodity market participants in the UAE.
The years following the introduction of Value Added Tax (VAT) in the UAE have tested its interpretation and practical application. The Federal Tax Authority (FTA) has proactively reacted with the publication of legislative amendments, taxpayer guidance, and private and public clarifications. Tax audits and enforcement actions by the FTA are also becoming increasingly sophisticated, with a focus on common errors and industry specific issues. Significant penalties may apply to non-compliance, particularly on errors which are not voluntarily disclosed.
Deloitte has therefore created a document to support businesses with identifying potential risk areas for commodity market participants in the UAE, and effective risk mitigation actions.