The Federal Tax Authority (FTA) issued Public Clarification No. 40, introducing significant amendments to the Executive Regulation of the Value Added Tax (VAT) as set forth under Federal Decree-Law No. (8) of 2017. These amendments encompass key updates concerning the documentary requirements for export transactions, the treatment of financial services, zero-rating provisions, and input tax deductions.
VAT Exemption for Government Buildings and Real Estate Assets UAE
The issuance or transfer of the right to use, exploit, or benefit from government buildings, real estate assets, or similar projects between government entities is not considered a supply and, therefore, is not subject to VAT.
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Composite Supply Rules Under VAT – Article 4(4)
Article 4(4) of the Executive Regulation states that for a single composite supply to exist multiple components must be supplied by the same supplier and their price must not be invoiced separately.
Changes Relating to Export Supporting Documents VAT Zero-Rating UAE
Evidence supporting exports has been simplified in Article 30 as it relates to zero-rated exports.
Proof Of Export Requirements UAE VAT
Companies must retain proof such as commercial export documents, shipping documents, and declarations.
VAT on Financial Services and Virtual Assets UAE
New VAT treatment applies to financial services, fund management services, and virtual asset transactions.
Zero-Rated Services and Transportation UAE VAT
Article 31 alters the criteria for service exports and international transportation zero-rating.
Rules of Division of Input Tax UAE VAT
The standard procedure for the division of input VAT remains unchanged.
Non-Recoverable Input Tax and VAT Recovery Rules UAE
New exceptions allow VAT recovery on employee health insurance under certain conditions.
Other VAT Law Changes UAE
Updates include virtual assets, business day definition, tax invoice deadlines, composite supplies, and VAT deregistration rules.
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How VAT Consultants in UAE Can Assist Businesses
VAT consultants assist businesses with VAT compliance, VAT filing, and implementation of VAT laws. Businesses may also review Corporate Tax in Dubai, consult Tax Consultants in UAE, or Contact us for VAT and corporate tax advisory services.
