Presentation is an attempt to give brief introduction of VAT in UAE & Provisions of Input Tax in GST Law.
Input tax is going to be the most important aspect from organisation point of view, cause levy is on supply value and not on value addition. Proper planning is very very important.
UAE VAT Law - Draft Executive RegulationManoj Agarwal
Much Awaited Regulations released by the UAE Government. Cabinet has approved draft of the Executive Regulations of the UAE VAT Law which will make UAE VAT Law implementation simplified.
Executive Regulations of UAE FTP - VAT in UAEManoj Agarwal
The UAE has released Executive Regulations of Federal Law No 7 of 2017 on Tax Procedures (FTP).
The Executive Regulations provides the outline on rights and obligations of the Authority, Taxpayer and any other Person dealing with the Authority for Value Added Tax (VAT) in the UAE and Excise Taxes along with any future taxes to be introduced in the UAE.
VAT in UAE, Tax in UAE
VAT in UAE: Comparison of Draft and Final Executive Regulations of the UAE VA...Manoj Agarwal
VAT in UAE
A Comparison of Draft and Final Executive Regulations issued by the Federal Tax Authority of the UAE. Changes and Additions are marked in red and blue colour in a easy to understand way.
The standard VAT rate will be 5% unless a zero rate or exemption applies.
The Member States have the right to subject the following sectors to a zero rate or to exempt them from VAT:
Education
Health
Real estate
Local transport
The Member States have the right to subject the oil sector, petroleum derivatives, and gas to a zero rate of VAT.
Individual GCC countries have the right to subject certain food products to a zero rate of VAT.
The Member States have the right to subject medical supplies to a zero rate of VAT.
Intra-GCC and international transport will be subject to a zero rate of VAT.
The export of goods to jurisdictions outside of the GCC Member States will be subject to a zero rate of VAT.
The Member States have the right to exempt Financial Services from VAT. The term financial services is not defined but broadly the exemption will generally relate to dealings in money, securities, foreign exchange and the operation and management of loan accounts, deposits, trade credit facilities and related intermediary services. The exemption is not expected to extend to fee based services transacted by a financial institution. However, Member States may choose to apply different VAT treatments to financial services if they wish.
Supplies of goods and services from a VAT registered person in one Member State to a VAT registered person in another Member State are subject to the reverse charge mechanism.
VAT grouping appears to be permitted between two or more legal persons resident in the same Member State.
The treatment of GCC free zones is not addressed and it is left to each Member State to determine its own VAT treatment for free zones.
Businesses with an annual revenue of over AED 375,000 will be required to register for VAT purposes.
Businesses with an annual revenue between AED 187,500 and AED 375,000 will have the option to register for VAT purposes.
What is zero-rated & exempted VAT? UAE ministry of finance published the list of economic activities categorized under zero-rated VAT & exempted VAT in UAE.
Presentation is an attempt to give brief introduction of VAT in UAE & Provisions of Input Tax in GST Law.
Input tax is going to be the most important aspect from organisation point of view, cause levy is on supply value and not on value addition. Proper planning is very very important.
UAE VAT Law - Draft Executive RegulationManoj Agarwal
Much Awaited Regulations released by the UAE Government. Cabinet has approved draft of the Executive Regulations of the UAE VAT Law which will make UAE VAT Law implementation simplified.
Executive Regulations of UAE FTP - VAT in UAEManoj Agarwal
The UAE has released Executive Regulations of Federal Law No 7 of 2017 on Tax Procedures (FTP).
The Executive Regulations provides the outline on rights and obligations of the Authority, Taxpayer and any other Person dealing with the Authority for Value Added Tax (VAT) in the UAE and Excise Taxes along with any future taxes to be introduced in the UAE.
VAT in UAE, Tax in UAE
VAT in UAE: Comparison of Draft and Final Executive Regulations of the UAE VA...Manoj Agarwal
VAT in UAE
A Comparison of Draft and Final Executive Regulations issued by the Federal Tax Authority of the UAE. Changes and Additions are marked in red and blue colour in a easy to understand way.
The standard VAT rate will be 5% unless a zero rate or exemption applies.
The Member States have the right to subject the following sectors to a zero rate or to exempt them from VAT:
Education
Health
Real estate
Local transport
The Member States have the right to subject the oil sector, petroleum derivatives, and gas to a zero rate of VAT.
Individual GCC countries have the right to subject certain food products to a zero rate of VAT.
The Member States have the right to subject medical supplies to a zero rate of VAT.
Intra-GCC and international transport will be subject to a zero rate of VAT.
The export of goods to jurisdictions outside of the GCC Member States will be subject to a zero rate of VAT.
The Member States have the right to exempt Financial Services from VAT. The term financial services is not defined but broadly the exemption will generally relate to dealings in money, securities, foreign exchange and the operation and management of loan accounts, deposits, trade credit facilities and related intermediary services. The exemption is not expected to extend to fee based services transacted by a financial institution. However, Member States may choose to apply different VAT treatments to financial services if they wish.
Supplies of goods and services from a VAT registered person in one Member State to a VAT registered person in another Member State are subject to the reverse charge mechanism.
VAT grouping appears to be permitted between two or more legal persons resident in the same Member State.
The treatment of GCC free zones is not addressed and it is left to each Member State to determine its own VAT treatment for free zones.
Businesses with an annual revenue of over AED 375,000 will be required to register for VAT purposes.
Businesses with an annual revenue between AED 187,500 and AED 375,000 will have the option to register for VAT purposes.
What is zero-rated & exempted VAT? UAE ministry of finance published the list of economic activities categorized under zero-rated VAT & exempted VAT in UAE.
The United Arab Emirates (UAE) has released the text of Federal Tax procedures Law (FTP). The FTP Law provides the outline on rights and obligations of the Authority, Taxpayer and any other Person dealing with the Authority for Value Added Tax (VAT) and Excise Taxes. Also any future taxes introduced in the UAE.
This write up consist of unofficial translation of the Federal Tax procedures Law (FTP)/ UAE VAT Law with views and suitable modifications, wherever appropriate, by the author.
Approved Executive Regulations now available for the UAE VAT Law. All businesses with taxable supplies of more than AED 375,000 needs to register before 4th December 2017 and be fully compliant with the UAE VAT Law
UAE VAT Law Executive Regulations (Draft) have been issued
UAE's Federal Tax Authority has issued the (Draft) VAT Executive Regulations today. You can download it here
What to do next?
Companies should now act fast to get themselves VAT compliant and apply for VAT registration.
How BMS AUDITING CAN HELP ?
At BMS AUDITING we are helping many companies to get VAT implemented successfully through our UK Experienced VAT experts. . We provide end to end VAT implementation services across UAE, in all Emirates
UAE Federal Tax Authority has released its Fee and Fines for the UAE VAT and Excise Law. This includes the administration fee of Federal Tax Authority with the fines and penalties on non compliance of Tax Laws of the UAE.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Unlike erstwhile indirect tax regime, GST promises seamless credit on goods and services across the entire supply chain with some exceptions. In this webinar, we shall understand and analyse the provisions related to Input Tax Credit under the GST law
Composition Scheme Registration Invoicing Returns Payment of Tax under GST.GST Law India
The following presentation focuses on Composition Scheme under GST, how Registration under composition scheme is to be done, invoicing, filing of returns and how is to be paid under this scheme.
The United Arab Emirates (UAE) has released the text of Federal Tax procedures Law (FTP). The FTP Law provides the outline on rights and obligations of the Authority, Taxpayer and any other Person dealing with the Authority for Value Added Tax (VAT) and Excise Taxes. Also any future taxes introduced in the UAE.
This write up consist of unofficial translation of the Federal Tax procedures Law (FTP)/ UAE VAT Law with views and suitable modifications, wherever appropriate, by the author.
Approved Executive Regulations now available for the UAE VAT Law. All businesses with taxable supplies of more than AED 375,000 needs to register before 4th December 2017 and be fully compliant with the UAE VAT Law
UAE VAT Law Executive Regulations (Draft) have been issued
UAE's Federal Tax Authority has issued the (Draft) VAT Executive Regulations today. You can download it here
What to do next?
Companies should now act fast to get themselves VAT compliant and apply for VAT registration.
How BMS AUDITING CAN HELP ?
At BMS AUDITING we are helping many companies to get VAT implemented successfully through our UK Experienced VAT experts. . We provide end to end VAT implementation services across UAE, in all Emirates
UAE Federal Tax Authority has released its Fee and Fines for the UAE VAT and Excise Law. This includes the administration fee of Federal Tax Authority with the fines and penalties on non compliance of Tax Laws of the UAE.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Unlike erstwhile indirect tax regime, GST promises seamless credit on goods and services across the entire supply chain with some exceptions. In this webinar, we shall understand and analyse the provisions related to Input Tax Credit under the GST law
Composition Scheme Registration Invoicing Returns Payment of Tax under GST.GST Law India
The following presentation focuses on Composition Scheme under GST, how Registration under composition scheme is to be done, invoicing, filing of returns and how is to be paid under this scheme.
Input tax credit & matching with return under gstNikhil Malaiyya
Input tax credit under GST, Matching with return under GST, Annual Return, Final Return, Monthly return, late filing fees under GST, Transitional Provision
With VAT implementation taking effect in under six months, the Ministry of Finance have now provided further clarification of the rules which will be imposed in respect of VAT within the UAE, furthermore we have seen updates across Saudi Arabia recently, with announcements being made in respect of the registration process. This short alert from Grant Thornton UAE summarises the recent clarifications which the UAE have announced, alongside the registration elements required within Saudi Arabia.
What is VAT ?
What is covered under VAT ?
At what rate to charge for which Items ?
When to charge ?
When to pay ?
What happens to sales returns and Bad Debts ?
What records to keep and how long to keep ?
When, how and with what information to file returns ?
What are the penalties for non-compliance ?
In this you will find a detailed introduction about GST and its conceptual aspects.
1. What is GST.
2. benefit of GST.
3. Importance for different class of people.
4. Registration requiremnets.
5. Supply
6. Place of supply.
7. Value of supply.
8. Time of supply.
9. Returns
In this you will find a detailed introduction about GST and its conceptual aspects.
1. What is GST.
2. benefit of GST.
3. Importance for different class of people.
4. Registration requiremnets.
5. Supply
6. Place of supply.
7. Value of supply.
8. Time of supply.
9. Returns
One of the fundamental features of GST is the seamless flow of input credit across the chain and across the country for supply of Goods or Services. Know more about ITC under GST at https://cleartax.in/s/gst-input-tax-credit/
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
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1. 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.
The law confirms the standard Tax rate will be fixed
at 5% on Goods and Services, which is on the lower
side compared to the rest of the world.
For taxable supplies, the advertised price shall be
assumed to include the Tax.
We still await the release of the Executive
Regulations, which will supplement and provide
details and clarifications to the Law. This Summary
will aim to provide highlights of the issued law:
Registration: Does every business have to
register?
Every person supplying taxable goods or services in
the State must register for VAT provided that the:
• value of taxable supplies and imports exceeds
the Mandatory Registration Threshold (to
be prescribed the Regulations) over the
previous 12-month period; OR
• the anticipated value of all taxable supplies
will exceed the threshold in the next 30 days
A lower threshold with the same criteria will be set
for those wanting to Register Voluntarily and for
those businesses not yet making taxable supplies will
include the total value of expenses which are subject
to Tax (so start-ups can take advantage of claiming
the input tax incurred).
Group Registration: Businesses may apply for
registration as a Tax Group provided they have met
the following conditions:
• Each business should have a Place or Fixed
Establishment in the State;
• They shall be Related Parties; and
• One or more persons conducting business in
a partnership shall control the others
Advantages will include less administrative burden as
the Group will only have to file one return for all the
businesses and intra-group transactions will not be
subject to VAT.
The Authority will assess the application and in
addition has the power to enforce Group registration
/ deregistration.
Input Tax recovery before registration:
Businesses should note that the input tax may be
recovered on goods or services used to make taxable
supplies provided the taxable supplies have not
moved to another implementing state and the services
were received less than 5 years prior to registration.
Supplies by Government entities: Are they
exempt?
Certain Government entities will be considered as
making taxable supplies in the following cases:
• Activities are conducted in a non-sovereign
capacity; OR
• Activities are in competition with the private
sector
A Cabinet decision is still to be issued on the criteria
/definition for these activities and entities.
Definitions:
State: United Arab Emirates
Authority: Federal Tax Authority
Implementing States: The GCC States that are
implementing a Tax Law pursuant to an issued
legislation
Tax Registration Number (TRN): A unique
number issued by the Authority for each
registered person
2. Record Keeping: What is required?
Taxable persons must keep records of all tax related
activities (including invoices for all supplies, imports,
exports, credit notes and adjustments). The Executive
Regulations will specify the conditions and time
limits for keeping such records.
Designated Zones: Are Free Zones included?
The Executive Regulations will specify the
conditions for certain areas to be classified as
‘Designated Zones’ and shall be treated as being
outside the State for the Purposes of VAT.
Goods being transferred from one Designated Zone to
another can be done so without any Tax becoming
due. There will be some exceptions specified in the
Regulations under which business conducted within
these zones will be regarded as being conducted in the
State.
Time of Supply: What is the Tax point?
Time of supply for goods or services will be the
earlier of:
• Date of receipt of payment; OR
• Date of issue of Tax invoice; OR
• Date goods transferred or services completed
Special Place of Supply Transitional Rules will
apply to supplies made after the effective date of VAT
implementation, whereby if delivered post the
effective date they will be subject to VAT even if
invoicing or payment has been done prior to the VAT
implementation date.
In addition, a business entering contracts which will
span over the implementation date should be aware of
whether the contract contains clauses related to Tax.
If there is no clause the consideration will be
considered as inclusive of tax thereby increasing the
cost for the supplier.
Imports: Are they subject to VAT?
Imports of goods and services by a registered
business shall be treated as making a taxable supply
to oneself and the importer shall be responsible for
applying the tax through the Reverse Charge
Mechanism (RCM), provided the importer is making
taxable supplies in the State. In the above scenario,
the RCM becomes purely an accounting entry without
any cash flow impact.
However, if the final destination of the goods is
another Implementing State, the Taxable person shall
pay the due tax on the import which may be claimed
from the implementing state.
A non-registered person shall pay tax on imports and
cannot claim the same.
Exports: Are they subject to VAT?
Exports to outside the implementing states will be
zero rated.
Discounts or Subsidies: What is the impact of
VAT?
When discounts are applied, the value of Tax shall be
calculated on the discounted price of the supply.
Bad Debt Relief: Can we reduce the output tax?
A taxable person may adjust the output tax on goods
and services supplied in a previous tax period,
provided all the following conditions are met:
• Goods and services have been supplied and
Tax has been charged and paid
• Consideration of the supply has been written
off as bad debt in the supplier’s accounts
• More than 6 months have passed from the
date of supply
• The supplier has notified the recipient that the
amount has been written off
Profit Margin Scheme
For specified second hand goods, the supplier may
calculate and charge Tax based on the profit margin
earned on the taxable supplies and not based on the
value of these supplies. The Executive Regulations
will specify the specific conditions for this scheme to
apply.
3. Some key sectors have been defined as having VAT relief:
Zero Rated Supplies
• Direct or indirect Export to outside the
Implementing states
• International transport of passengers or
goods which starts on ends in the State
• First Supply of residential buildings
(within 3 years of its completion)
• First Supply of buildings designed to be
used by Charities
• First Supply of buildings converted from
non-residential to residential
• Supply of crude oil and natural gas
• Supply of educational services and related
Goods and Services for nurseries, preschool,
elementary education and higher education
institutions owned or funded by Federal or
local Government
• Supply of basic and preventative health
care Services and related goods and services
• Supply or import of investment precious
metals classified as being for investment
purposes
• Supply of air, sea, and land means of
transport for the transportation of passengers
and goods
• Supply of goods or services related to the
supply of the means of transport mentioned
above
• Supply of aircrafts or vessels for rescue and
assistance by air or sea
Exempt Supplies
• Financial Services to be specified in the
Executive Regulation
• Residential buildings through sale or lease
(other than those that are zero rated)
• Bare Land
• Local passenger transport
Amit Chib, Managing Partner Anju Krishan, Partner Meera Kohli, Associate Director
amit.chib@haynespath.com anju.krishan@haynespath.com meera.kohli@haynespath.com
Office 1002, The Citadel, Business Bay P.O. Box 127616, Dubai, UAE
Haynes Path Management Consultancy is a Dubai, UAE based consulting firm specializing
in Value Added Tax (VAT), Mergers and Acquisitions (M&A) and Management Consulting.
Contact our team for any enquiries:
Tel: +971 4 240 7152/8154/8176 Email: contact@haynespath.com
www.haynespath.com