UAE VAT - Current Policies and the Way Ahead

In a session addressing the evolving landscape of Value Added Tax within the United Arab Emirates, Nexdigm experts provided a comprehensive overview of current policies and emerging trends. The discussion explored recent changes in the Executive Regulation, clarifications on specific VAT treatments, and upcoming regulatory shifts impacting businesses.

The presentation delved into the intricacies of VAT treatment for manpower versus visa facilitation services, drawing upon the guidelines provided in VATP038. Speakers examined the conditions determining taxability, particularly within corporate and VAT group structures. Special cases related to the value of supply, especially concerning related parties, were also analyzed.

Furthermore, the session highlighted key amendments to the Executive Regulation, including exceptions of supplies and deemed supplies, as well as changes to tax deregistration procedures. The experts also discussed modifications to zero-rating provisions for exported goods and certain means of transport, emphasizing the implications for businesses involved in international trade.

The discussion extended to the amended definition and tax treatment of financial services, the tax on supplies with multiple components, and non-recoverable input tax scenarios. The session also covered tax invoice and credit note requirements, including recent changes and conditions.

Looking ahead, the presentation addressed the Federal Tax Authority's (FTA) push for UAE Pass integration for EmaraTax and the upcoming implementation of e-invoicing, outlining key dates and requirements. Finally, the session shed light on recent public clarifications from the FTA, focusing on tax assessment reviews and grace periods for updating tax records.

Through this comprehensive overview, Nexdigm aimed to equip businesses with the knowledge necessary to navigate the complexities of the UAE VAT system effectively.