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...

Read More

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...

Read More

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...

Read More

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 : ♦...

Read More

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...

Read More

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...

Read More