The United Arab Emirates: VAT Update

Update regarding VAT invoicing and guidance in The UAE

UAE VAT Update

There's been a number of updates regarding VAT regulations within the United Arab Emirates in the last year. The UAE introduced a VAT regime back in 2017, along with Saudi Arabia. Other regions in The Gulf have been following their footsteps.

The tax authority (FTA) as published a new Publis Clarification (VATP006) - Tax Invoices, clarifying the application of Article 59 of the Executive Regulations. The Clarification explains the following requirements:

  • A taxable supply is made: a tax invoice must be issued and delivered to the recipient.
  • Simplified tax invoices are issued: there is no requirement to show the net value of line items.
  • Full tax invoices are issued: line items have to show the tax value and net value, it is not mandatory to show the gross value.
  • Tax invoices issued in a foreign currency: these must show the tax amount converted to AED and the exchange rate used for the conversion.
  • Rounding on tax invoices: this should be performed on a line item basis to the nearest Fils.

They have also updated the 'VAT User Guide - May 2018' and 'Tax Groups User Guide-July 2018'. The updated guidance includes important information on how to assign a new e-mail ID for accessing a taxable person's online account and de-activating an existing ID.

Don't forget to subscribe to our blog so you never miss an update!

We know that Indirect taxes such as VAT and GST can have a huge effect on your business. As VAT rates change sporadically keeping yourself informed can be difficult.  Compliance is always crucial. That’s why our Indirect Tax Experts share their hand-picked news stories every day that you need to know. From breaking news to VAT changes and new EU legislation. We know that relevant information means better decision making. We aim to be your number 1 source for VAT and GST news.

 +353 56 778 34 00  | vat@taxbackinternational.com 

Find what you're looking for!

see all