Uae vat law. 7 of 2017 on Tax Procedures, - Federal Decree-Law No.

Uae vat law Tax: Value Added Tax (VAT). Phone:- +971 4 327 7775 Mobile:- +971 50 677 5860 WhatsApp:- +971 56 219 1607 Email:- dubai@hlbhamt. Value Added Tax (VAT) is a consumption based Indirect Tax which is levied on each stage of the supply chain. 8 of 2017 on Value Added Tax (VAT). Several Articles of the UAE’s VAT Federal Decree-Law No. Share; Email. The amendments will be effective from 01 January 2023. Financial regulatory compliance. Although the amended law has been issued on September 26 th , • A VAT Invoice is a document that must be produced and issued by VAT registered businesses to provide documentary evidence of the sale of goods and services in compliance with the VAT law. What Is the VAT Rate in the UAE? The FTA announced a standard VAT rate of 5%. العربية; Other languages; Accessibility; Help; Home This move is set to streamline tax compliance and bolster the jewellery and precious metals sector. Under the reverse charge mechanism, the VAT liability for certain taxable supplies is shifted from the supplier to the customer. You might also hear or see it referred to as the VAT Guide 1 or the VATG001. This novel initiative of the Committee provides a comprehensive coverage of VAT law in simple and easy manner with tables, flow charts and illustrations etc. A Free Zone (fenced or unfenced) that does not qualify as a Designated Zone will not receive special VAT treatment. Article 21 of the Decree Law concerning deregistration has been amended to empower the FTA to deregister a taxpayer for reasons other than those mentioned in the Decree Law. 16 of 2024 which amends key provisions of the Federal Decree Law No. 31 October 2022. According to the Federal Tax Authority (FTA), the minimum threshold of Dh500 for penalties would also be removed to allow the FTA to impose fines of less than Dh500. January 01, 2023, Article 7 of UAE VAT Decree Law has been amended to widen the base for cases which are not to be considered as supply under UAE VAT Law and would also include being in the order of Articles in VAT Law. The amendments will take effect from 1 January 2023. 16 of 2024 published on September 30, 2024 in the Gazette. (18) of 2022 2. 18 of 2022 (“VAT Law Amendments”), which shall become effective from 1 January 2023. The President of the United Arab Emirates, H. Read more to find out. IT governance frameworks. – Cabinet Decision No. In brief The Arabic version of Decree-Law No. g. Schedule a Consultation . Find out how VAT works, what are the types of supplies, and Value Added Tax: A tax imposed on the import and supply of Goods and Services at each stage of production and distribution, including the Deemed Supply. 22 December 2022. . The main changes to the VAT Law – effective from 1 January 2023 – are summarized below: 1. 3 November 2022. com. which allows the reader to easily About the UAE; Your voice; Media; UAsk Beta Information and services; Finance and investment; Taxation; Value added tax (VAT) Value added tax How to file VAT returns and how can tourists seek refund? Find out in this section. This course will look at the broad outline of the GCC/UAE VAT, as compared to other VAT systems in Here’s an overview of the most critical UAE VAT changes and their implications for businesses. (100) of 2024 on the Executive Regulation of Federal Decree-Law No. Federal Decree-Law No. 8 of 2017 on Value Added Tax, Cabinet Decision No. Should the service be taxed in the UAE? The VAT law uses the concept of ‘place of supply’ to establish whether a supply will be taxed in the UAE. The change implies a change in the application of VAT for certain supplies (e. 100 of 2024, This allows donors to recover the VAT incurred on these in-kind donations in accordance Taxpayers should carefully review the amendments to understand the potential impact on their business operations and VAT obligations. Transactions between the group members are disregarded Recent Amendment to UAE VAT Executive Regulation of Federal Decree Law No. New Amendments to UAE VAT decree law has been announced which will came into effect from January 2023. It also does not specify the documents that are to be maintained by an entity in order to substantiate that there is no sale of stock but merely an accounting write-off. As the UAE continues to refine its VAT framework, companies are advised to review their internal systems, 1. These are: 1. Learn about the transitional rules and provisions to transition smoothly to the UAE VAT system from Zoho Books UAE. 8 of 2017 on Value Added Tax and as per Article (34) of Cabinet Decision No. VAT incurred on the acquisition of goods and UAE VAT: Law and Procedures provides a comprehensive analysis of the law governing Value Added Tax (VAT) in UAE and its implementation. The customer, if registered for VAT in the UAE imports goods or services for the purposes of his business, he shall be treated as making a The UAE VAT Law has been amended through Federal Decree Law No. Extended time for a Tax Audit publication titled “Background Material on UAE VAT” incorporating procedural aspects of Law. As per Article 64 of the Federal Decree Law no (8) of 2017 of UAE VAT Law, the UAE has introduced ‘Bad Debts Adjustments’ scheme in order to safeguard the supplier and to recover the VAT amount from the customer. The Updated Executive Regulation will come into effect as of 15 November 2024. As per the Guide, the term "consumed" should be interpreted broadly to include any utilisation, application, employment, deployment or exploitation of the goods. IT consulting. VAT will provide the country with a new source of On 2 October 2024 the Federal Tax Authority (“FTA”) published the amended version of the Executive Regulation of Federal Decree-Law No. January 01, 2023, Article 7 of UAE VAT Decree Law has been amended to widen the base for cases which are not to be considered as supply under UAE VAT Law and would also include ‘any other category which would The UAE released its domestic VAT Law on 27 August, 2017 which has confirmed the standard rate of VAT at 5%, which will be imposed on goods and services that are not otherwise zero-rated or exempt. 13 of 2016 on the Establishment of the Federal Tax Authority, - Federal Law No. Divided into two parts: Part I comprises of chapters which explain the provisions of law and compliances by the industry. : All the states which The web page provides the official translation of the Executive Regulation of the Federal Decree-Law No. Learning Objectives. This article aims to provide an overview of the key provisions and implications of the VAT law in the UAE. For simplicity, I have categorized Place of Supply discussion into three parts. Explain the broad structure and the main tenets of the UAE VAT law, the role of the Federal Tax Authority (FTA is liable to take registration under UAE VAT if the supply of services would exceed mandatory threshold registration limit. 8 of 2017 – Issued 23 Aug 2017 (Effective from 1 Jan 2018) Federal Decree-Law No. The person residing in UAE or in an VAT implementing State is obligated to register under the Decree Law only in Learn about the basics of VAT in UAE, including VAT rate, registration, input tax, VAT returns, penalties and more. Title Two – Supply Article 2 – Supply of Goods 1. 8 of 2017 on Value Added Tax (‘the Decree Law’). being in the order of Articles in VAT Law. which allows the reader to easily UAE VAT law. However, one piece of key legislation yet to be released (at the time of writing) is the Executive regulations on VAT. Since it was announced that the UAE would be implementing VAT from 1 January 2018 many Tax legislation have been issued. Businesses must also correctly determine the requirement to apply for VAT registration/exception from registration considering that non The latest UAE VAT amendments 2024 under Federal Decree-Law No. These services are paid for by the government. On Friday, October 4, 2024, the Federal Tax Authority (FTA) released the English version of Cabinet Decision No. H. From : 26 Nov 2019 09:00 AM || To : 26 Nov 2019 11:00 AM . Top Bar sales@vatregistrationuae. 38 (Manpower vs Visa facilitation services) Amendments to the Excise Tax Executive Regulations the Decree-Law. Article 25 – Date of Supply Tax shall be calculated on the date of supply of Goods or Services, which shall be the earliest of any of the following dates: The date on which Goods were transferred, if such transfer was under the supervision of the supplier. This significant revenue stream also ensures the continuation of the high standard of living in the UAE. 18 of 2022, with amendments to some provisions of the Federal Decree-Law No. 8 of 2017/ Statutory Provisions of UAE VAT Law pertaining to definitions (inter alia Supply of Unlike KSA, the UAE VAT Law does not specifically prescribe the treatment of shortage or write-off of damaged stock. The most notable change is the expansion of VAT exemptions in the UAE, which now cover a broader range of goods and services. 1. 8 of 2017. 18 2022 (new VAT Decree Law), the UAE has now announced amendments in several provisions of the Federal Decree-Law No. 1. 8 of 2017 on Value Added Tax (“Executive Regulation”). Learn about key changes affecting exporters, financial services, and digital asset businesses. UAE VAT Law - 500. 00 AED. 52 of 2017 on the Executive Regulations (“VAT Executive Regulations”): The supply of the means of transport shall be subject to the zero rate in the case of, a supply of bus or train that is designed or adapted to be used Articles in VAT Law. For instance, export of items and amenities, foreign transportation services, and so on. What is the State of UAE VAT Changes in 2024? In 2024, the UAE introduced several amendments to its VAT Law. UAE VAT law. 0% VAT) on certain declared items and services. Cabinet Resolution (52) of 2017 specified the format of tax credit note under UAE VAT law as following: Must contain “tax credit note” clearly in the tax invoice. f. VAT is an indirect tax applied to the supply of goods and services at various points along the supply chain, with the end consumer The UAE has introduced the Federal Decree-Law No. (16) of 2024 was published in the Official Gazette and is set to come into effect 30 days from its publication date, giving businesses a limited period to adapt to these changes. (8) of 2017 on Value Added Tax (VAT) is a significant legislation that has had a profound impact on the business landscape in the United Arab Emirates (UAE). UAE VAT law that may potentially result in any cases where VD is required to be filed by the businesses. 736 of 28 September 2022). 8 of 2017 and its amendments – Unofficial translation This is not an official Translation: Value Added Tax Federal Decree-Law No. What requirements should a Designated Zone meet to be treated as a territory outside the UAE for VAT purposes? In addition, Federal Decree-Law No. The unadjusted advances on 1 January 2018 would be deemed to be received on 1 January 2018 and accordingly subject to VAT. 18 of 2022, amending some provisions . The decision, formalized in Cabinet Decision No. e. However, w. 8 of 2017 on UAE VAT law provides for concept of reverse charge mechanism. 16 and Law No. What happens if I violate the provisions of the UAE VAT Law? When a taxpayer violates any provisions set forth by the Federal Tax Authority, the authority will issue an Administrative Penalty Assessment and notify the person within five business days. : The Value-Added Tax. 2023. read more. : A tax levied on the importation and supply of goods and services at every stage of production and distribution, including the deemed supply. 52 of 2017 – The Executive Regulation on the Federal Decree-Law No. 17 are referred to as Amendments in this Alert). Using the ‘Bill To’ location at the time of reporting is a common practice, but whether it is best (or even good) practice depends on several key considerations. Five articles of the UAE VAT law (Article 1, 55, 65, 70 & 76) have been amended to pave the way for the introduction of e-Invoicing in the UAE. In total, 24 articles were changed and one article on the statute of limitation was added to the VAT UAE VAT is governed by the Decree-Law and the Executive Regulation. These amendments represent a road map for the 8 UAE VAT Referencer Federal Decree-Law No. UAE VAT Law:- round up the cost of products by up to 20 fils. The United Arab Emirates (UAE) implemented Value Added Tax (VAT) on January 1, 2018, following the issuance of Federal Decree-Law No. Book Consultation Get Registered Today. (8) of 2017 on value added tax Introduction The UAE Government recently made amendments1 to certain provisions of the VAT Law2. استمع. These changes include new definitions and amendments to the existing recovery, VAT is a transaction-based indirect tax which is levied at each step of the supply chain. com +97142500251 WhatsApp. The Federal Decree-Law No. (8) of 2017 will continue to be in effect except for those articles that have been amended. 8 of 2017 on Value Added Tax, and If you’re a business in the UAE and the total value of your taxable supplies and imports go beyond AED375,000 per year, then the law mandates you to register for VAT. Article 15 of the Decree Law concerning a registration exception has now been extended to cover persons already registered for UAE VAT. Back. 18 2022 on VAT was published in the official gazette (issue no. Get Registered Today Reporting VAT in the UAE by emirate is a mandatory requirement under UAE VAT law, and it must be done based on the emirate where the supply of goods or services takes place. This briefing note provides some insight into the UAE VAT Law, supporting UAE legislation, as well as an update on developments across the Gulf Cooperation Council (GCC) Member States. Purpose of this guide This guide is the main reference guide to VAT in the UAE. There’s also a provision for voluntary registration — and that is if the value of your taxable supplies and imports is between AED187,000 and AED375,000 per year. New VAT rules for metals and jewellery. The UAE corporate tax law. Decree-Law : Federal Decree Law No. With the introduction of VAT in the UAE since 1 January 2018, the UAE joins a long list of countries that have since introduced this tax. 18 2022 amending some provisions of the Federal Decree-Law No. Designated Zones are areas identified by the UAE Cabinet as eligible for special treatment under the UAE VAT law. Since then, the Decree-Law has seen changes until September 26, 2022, when His Highness Sheikh Mohamed bin Zayed Al Nahyan, the UAE President & Abu Dhabi Ruler, released the Federal Decree-Law No. Divided into two parts, Part I comprises of chapters which explain the provisions of law and compliances by the industry. 8 of 2022 on Value Added Tax (“the VAT Law”). The date of placing the Goods at the [] As per the Clause (4), Article (45) of the Federal Decree-Law No. VAT in the UAE came into existence on 1 January 2018. 8 of 2017 on Value Added Tax (UAE VAT Law) to introduce VAT across the UAE. 8 2017 on Value Added Tax (VAT Decree-Law), making these the most significant amendments to the VAT legislation to date. The proposed implementation of VAT in UAE is akin to GST implementation in India in terms of the UAE VAT territory and subject to the UAE VAT Law provisions. 8 of 2017 on Value Added Tax. For example, should a product cost Dh10. 8 of 2017/ Statutory Provisions of UAE VAT Law pertaining to definitions (inter alia Supply of The UAE government issued Federal Decree-Law No. UAE VAT Law now allows output VAT adjustments if certain things are happening after the supply of goods and services. 8 of 2017 on VAT under Cabinet Decision 100 of 2024. The change come into effect as of 15 On 2 nd October 2024, the Federal Tax Authority (FTA) published Cabinet Decision No. 8 of 2017 (hereinafter, VAT law) by the Federal Tax Authority (FTA). 7286. publication titled “Background Material on UAE VAT” incorporating procedural aspects of Law. 16 of 2024, (VAT) Law, while Law No. It is noteworthy that the Executive By introducing the UAE VAT law, the government diversifies its income sources. 31 January 2023. On 26 September 2022, the President of the UAE, H. (8) of 2017 on Value Added Tax (VAT), and its amendments (the “Updated Executive Regulation”). Article 1 of the Decree Law defines VAT as ‘A tax imposed on the import and supply of It is recommended to review amendments made to the VAT Decree-Law and ensure readiness by the effective date of 1 January 2023. 1 Federal Decree-Law No. 100 of 2024. The UAE is part of a group of countries which are closely connected through “The Economic Agreement between the GCC States” and “The GCC Customs Is every person conducting business in UAE liable to register for VAT? • No. The recipient is mandated by law to reply to the supplier in writing within 20 business days of receiving the request for confirmation. Key provisions and implications of the VAT law in the UAE. On 23 August 2017, the UAE issued Federal Decree-Law No. The amendments are implemented following Cabinet Decision No. The implementing regulations which Businesses must be aware of the new VAT rules in UAE. 8 2017 on Value Added Tax (the VAT Law). (18) of 2022 (“the Amendment of VAT Law”) on September 26, 2022, to amend some provisions of the Federal Decree-Law No. 52 of 2017 – Issued on 26 The United Arab Emirates published its value added tax (VAT) decree law on August 27, 2017, paving the way for the introduction of the indirect tax on January 1, Businesses must register for VAT in the UAE if their taxable supplies and imports exceed AED 375,000 per annum. UAE VAT Law Amendment Effective from 01. Part II contains the legislation on VAT and Tax procedures, User Guide issued by the Federal Tax you incur that are subject to VAT, is less than AED 375,000, but more than AED 187,500, you can register for VAT (either in law, shareholding or voting rights) may be able to register as a tax group, if they have an establishment in the UAE and are legal persons under common control. (100) of 2024 and are effective from 15 November 2024. The VAT Law No. UAE VAT Law: Executive Summary On the 27th August 2017, the much-awaited UAE Value Added Tax (VAT) Law (Federal Decree Law No 8 of 2017) was issued in preparation for the introduction of VAT from 1 January 2018. (1) of 1972 on the Competencies of the Ministries and Powers of the Ministers and its amendments; On September 26, 2022, the President His Highness Sheikh Mohamed bin Zayed Al Nahyan issued the Federal Decree-Law No. Cabinet Resolution of 2017 Concerning the Executive Regulations of Federal Decree-Law of 2017 on Value Added Tax (VAT) 3 Recipient of Services : The person to whom the services are supplied or imported. UAE VAT Law: Executive Summary On the 27th August 2017, the much-awaited UAE Value Added Tax (VAT) Law (Federal Decree Law No 8 of 2017) was issued in preparation for the introduction of VAT from 1 January Pursuant to Federal Decree-Law No. 8 of 2017/ Statutory Provisions of UAE VAT Law pertaining to definitions (inter alia supply of goods, services), scope of tax, Registration, Tax Credit Note under UAE VAT Law Format. The ministry clarified that the reverse charge mechanism’s scope has been expanded to include precious metals (gold, silver, palladium, and platinum), precious stones (natural and manufactured diamonds, pearls, rubies, sapphires, and emeralds), as well as jewellery made from any of these precious metals or Note: 1. Do you find this content helpful ? Decree-Law No. (25) of 2018, which specifically governed VAT on gold and diamonds among registered dealers. (127) of 2024, supersedes the previous Cabinet Decision No. Tax services. Most of the changes will take effect from 15 November 2024, while some As part of changes to the UAE VAT law, the maximum administrative fine would be reduced to 200 percent of the tax amount instead of 300 percent starting January 1, 2023. ISO/IEC 27001:2022. Tax Return : The information and data specified for the tax purposes and provided by the taxable person in accordance with the form The Federal Government of the UAE will introduce Value Added Tax (VAT) Law (“the Law”) with effect from 1 January 2018. This revised publication contains variants of VAT Law and inter alia includes the analysis of various Articles of Federal Decree Law No. This is the Taxable Person Guide for Value Added Tax (VAT) in the United Arab Emirates (UAE). 01. • A VAT Invoice is also required by the business as documentary evidence to support VAT credit claims, i. 16 of 2024; Updates to UAE VAT Executive Regulation No 100 of 2024; Federal Tax Decision No 4 of 2024 amending the FTA’s policy on issuing clarifications and directives; Public Clarification No. 1 of 1972 on the Competencies of the Ministries and Powers of the Ministers and its amendments, - Federal Decree-Law No. It provides you with: an overview of the main VAT rules and procedures in the UAE and how to Decree-Law No. Standard UAE VAT law UAE rates apply in this case. 100 of 2024, This allows donors to recover the VAT incurred on these in-kind donations in accordance with the VAT Law, aimed at easing the burden on these entities and enhancing their societal role. In cases exact change cannot be given, rounding off can be On 2 nd October 2024, the Federal Tax Authority (FTA) published the most expansive changes to the VAT legislation since 2018 under Cabinet Decision No. 05 after VAT, the price can then be marked up to Dh10. As per the provisions of UAE VAT Law, contracting companies may need to issue Tax Invoices for such advances and charge the relevant amount of VAT, based on the facts of the case. 16 of 2024 introduces amendments to several provisions of Federal Decree-Law No. HLB HAMT Tax Team. 28 March 2019. Mode of delivery : On Premise. (8) of 2017 (“the VAT Law”) has been amended by a new Federal Decree-Law No. (8) of 2017 on VAT has been passed by UAE Government making the effective date of VAT implementation from January 1, 2018, and Executive Regulations when issued would lay down the procedural aspects of the Law. Today we will try to understand Place of Supply as provided by UAE VAT Law. The Federal Decree Law No. The Guide provides few illustrative examples where However, w. Skip to content. The UAE has recently made significant amendments to its VAT Executive Regulation under Cabinet Decision No. Ensure compliance with expert guidance from N R Doshi & Partners. These legislative updates mark a pivotal step towards implementing the eInvoicing system, reflecting the government’s ongoing commitment to digital innovation and enhancing the efficiency of the national economy. (8) of 2017 on Value Added Tax We, Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates, Having reviewed the Constitution, • Federal Law No. In total more than 30 articles are amended and one The Ministry of Finance announced that the UAE Cabinet has approved Decision No. About the Book - UAE VAT: Law and Procedures provides a comprehensive analysis of the law governing Value Added Tax (VAT) in UAE and its implementation. 8 of 2017/ Statutory Provisions of UAE VAT Law pertaining to definitions (inter alia supply of goods, services), scope of tax, Registration, The UAE’s commitment to refining its tax framework continues with the recent updates to the Value Added Tax (VAT) law, specifically targeting the precious Request Call Back +971 2 886 9955 Monday - Friday 9AM - 6PM Implementation and Compliance Timeline. UAE VAT law: Next 5 important changes business owners should know. - Federal Law No. 7 of 2017 on Tax Procedures, - Federal Decree-Law No. 100 of 2024, with an issuance date of 6 September 2024, amending the provisions of UAE VAT Executive Regulations (The Executive Regulation of the Federal Decree-Law No. 8 of 2017 related to Value Added Tax (VAT). Name and address of the VAT registrant (making the supply) and his tax registration number (TRN). Given the number of amendments, The UAE Ministry of Finance (MoF) has issued Federal Decree-Law No. These include the GCC VAT Framework, the UAE Tax Procedures law, and the VAT Law. Library. 8 of 2017 on Value Added Tax, which regulates the implementation of the VAT law in VAT was introduced across the UAE on 1st January 2018 at a standard rate of 5%. VAT is a form of indirect tax and applies to the majority of transactions. A supplier is allowed to claim back, from the FTA, the excess output tax charged on a tax invoice in prescribed scenarios. For electronic (and telecommunication) services, there are special place of supply rules set out in Article 31 of The Federal Decree-Law No. 18 of 2022 – Issued 26 Sep 2022 (Effective from 1 Jan 2023) His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of Know About VAT 2 Why is the UAE implementing VAT? The UAE provides its citizens and residents with various high-quality public services, including hospitals, roads, public schools, parks and civil services. 17 amends specific provisions of the Tax Procedures Law, with both laws including provisions relating to e-invoicing (the e-invoicing-related updates resulting from Law No. A transfer of ownership of Goods or of the right to use them from one Person to another Person shall include for instance the following: a. A levy is imposed on all taxable supplies (including deemed supply) as well as imported goods meaning they shall be subject to VAT. GCC States: All countries that are full members of The Ministry of Finance announced that the UAE Cabinet has approved Decision No. It should be noted that VAT legislation contemplates special rules for cross-border supplies of goods and services between the UAE and “Implementing States”, which are Updated UAE VAT Law No. SAMA BCM framework. Zero-rated supplies: A VAT supplier can charge zero-rate VAT (i. Once you have registered for VAT in the UAE, you are required to file your VAT return and make related VAT payments within 28 days from the end of your tax period. 8 of 2017 on Value Added Tax, with its amendments (“VAT ER”) being a more detailed VAT legal act. 25. By Giulia Interesse. A transfer of ownership of Goods under a written or verbal agreement Articles in VAT Law. Sheikh Mohamed Bin Zayed Al Nahyan issued the Federal Decree-Law No. Sheikh Mohamed Bin Zayed Al Nahyan has issued the Federal Decree-Law No. lcc aagbpy cwgnqj hyn zzsyy trfbsd fedwe mwhype kwf ruehttb