UAE FTA’s VATP041: What It Means for Financial Institutions Using SWIFT Services
The UAE Federal Tax Authority (FTA) has issued a new public clarification — VATP041 — addressing the VAT implications for SWIFT messages. This replaces the earlier guidance under VATP036 and carries significant implications for financial institutions operating in the UAE. SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a critical infrastructure for interbank communication, […]
UAE VAT Public Clarification by Federal Tax Authority VATP038 on Manpower vs Visa Facilitation Services
On May 31, 2024, the Federal Tax Authority released a much-awaited public clarification with instructions regarding the taxability of services related to facilitating visas and personnel supply. This clarification guides the distinction between services for facilitating visas and workforce supply. According to the clarification, companies are facing tough challenges in determining the nature of supply and the value of these supplies for VAT purposes.
Vouchers and VAT implication in UAE
Vouchers have become indispensable across a multitude of industries. It offers customers diverse opportunities to access products, services, or discounts. The implementation of the Value Added Tax decree law, as amended, and the cabinet decisions related to the executive regulations of the federal decree law on value-added tax, as amended, have prompted businesses to thoroughly assess their operations.
Latest update – Input Tax Apportionment VATGIT1
A taxable person is entitled to recover input tax incurred on the purchase of goods and services where certain conditions are met. Thus, the recovery of input tax will be permitted where acquired goods and services are used, or intended to be used, in making any of the following:
VAT Clarification for Zero Rated Supplies in the UAE
The Federal Tax Authority of UAE released a public clarification on the temporary zero-rating of specific medical equipment. This notification informs the public about VAT exemption on the supply or import of specific medical equipment from September 1, 2020, until December 31, 2021.
Change in the permitted use of a building | VATP018
The FTA has issued a Public Clarification VATP018 : Change in the permitted use of a building.
FTA’s Clarification For Recovering Input Tax
The UAE Federal Tax Authority (FTA) has issued a new public clarification. The public clarification is known as VATP017 on Article 55 of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (“VAT Law”). This clarification elucidates the FTA’s stand on interpreting Article 55 of the VAT Law. It discusses the period within which they can recover the input tax.
Impact of VAT on Hotel and Leisure Sector
The Hotel & Leisure (H&L) sector is comprised mainly of the following subsectors: tourism and tour operators, hotel industry, airlines etc. (Impact of VAT on Hotel and Leisure Sector) The scope of Hotel & Leisure services under these sub sectors is quite broad and may include: