Archive for Category: blog

VAT ON DIRECTOR’S SERVICES

CONDITIONS FOR TAXABILITY OF DIRECTOR’S SERVICE : • It should be a supply of service • Services are for consideration • Services provided must be in the course of conducting business • Services are provided in the UAE • Service is not an exempt supply • The director undertakes...

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VAT REFUND FOR BUSINESS VISITORS

BASIS OF MAKING A CLAIM FOR REFUND : 1) The business is resident in any GCC State that is not considered to be an Implementing State; or 2) A foreign entity that carries on Business but : ♦ Has no place of establishment or fixed establishment in the...

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LABOUR ACCOMMODATION- RESIDENTIAL VS SERVICED PROPERTY

INTRODUCTION :  • Labour camps and Labour accommodation are generally areas where labourers are housed by their employers. • They can take many different forms and some may provide residents with additional services on top of the living accommodation LABOUR ACCOMMODATION AS A RESIDENTIAL PROPERTY : • The...

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VOLUNTARY DISCLOSURE FOR VAT

INTRODUCTION : A Voluntary Disclosure is a form provided by the Federal Tax Authority (“FTA”) pursuant to which the Taxpayer notifies the FTA of an error or omission in a Tax Return, Tax Assessment or Tax Refund application DETERMINING  SUBMISSION OF VOLUNTARY DISCLOSURE : ♦...

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USE OF EXCHANGE RATE FOR VAT PURPOSES

USE OF EXCHANGE RATE FOR IMPORTS OF SERVICES : ♦ Where businesses import services from foreign suppliers which are subject to VAT under the reverse charge mechanism, the invoice received for the supply is likely to be in a foreign currency ♦ Businesses should use the...

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VAT APPLICABILITY ON PROFIT MARGIN SCHEME

INTRODUCTION TO PROFIT MARGIN SCHEME  : ♦ Defined as the difference between the buying and selling price of an item, and is inclusive of taxes ♦ Calculation of VAT is on Profit Margin rather than on total value of Goods ♦ It avoids Double Taxation on second...

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VAT IMPACT ON SHIPPING SERVICES

 1. VAT COMPLIANCE : A) WITH RESPECT TO GOODS : ♦Responsibility of VAT Compliance is on the Importer/ Exporter ♦In case of Export of Goods, VAT is Zero Rated ♦In case of Import of Goods, Reverse Charge Mechanism applies and liability will fall on the Importer ...

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NON RECOVERABLE INPUT TAX – ENTERTAINMENT SERVICES

Under VAT in UAE, registered businesses are eligible to recover the VAT paid on purchase of goods and services used for business purposes. In addition, there are certain supplies on which input tax recovery is not allowed. This article is regarding non recoverable input tax...

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Jafza Offshore Agents

Jebal Ali Free Zone Authority (JAFZA) is located in Dubai. It is one of the world’s largest and fastest growing Free Zones Authorities. The main advantage of having a JAFZA Offshore company in Dubai is that this type of companies can Purchase a FREE HOLD property in Dubai. Unlike...

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