VAT on Goods & Services supplied from Designated Zone in UAE

VAT on Goods & Services supplied from Designated Zone in UAE

A Designated Zone is a specific region in the UAE that is treated as outside the implementing States for the VAT purpose. Since these zones are out of the purview of the VAT UAE, the computation of VAT on the supplies made from a Designated Zone requires a different mechanism.

VAT applicability to services supplied from a Designated Zone in the UAE is slightly different from the supply of goods because the place of supply for such services is treated to be in the UAE even if it is a designated zone.

At present, there are 20 Designated Zones in the UAE out of the total 45 free zones. A free zone and a designated zone is not necessarily the same thing for the purpose of the VAT. This article explains the VAT rules for goods and services supplied from a UAE Designated Zone. Read More

UAE Exchange Now Accepting VAT payments

UAE Exchange Now Accepting VAT payments

Following the release of the GIBAN system to make it easier for UAE residents and businesses to pay their VAT dues, the FTA has now started accepting VAT payments through UAE Exchange.

In a recent announcement, UAE Exchange has said that registered businesses in the UAE can now use the Exchange services for making payments of their pending value added tax (VAT).

The service will be provided by all the 150 branches of UAE Exchange located across the Gulf region. Any registered taxpayer with a valid GIBAN account number and a tax registration number (TRN) can use the service for making payments of taxes. Read More

VAT Invoices UAE – Tax Credit Note Explained

VAT Invoices UAE - Tax Credit Note Explained

Tax Credit Note is one of the VAT invoices that a registered taxpayer issues to customers in specific conditions. In this article, we will learn more about the eligibility, conditions, and format of Tax Credit Note.

The VAT rules of GCC make it compulsory for registered taxpayers to attach proper VAT invoices for all their sales and purchases. The FTA has already prescribed formats for tax invoices, debit/credit notes and other tax-related documents to be used by businesses in the UAE. Read More

FTA Clarifies Queries About VAT on Diamonds And Gold in UAE

FTA Clarifies Queries About VAT on Diamonds And Gold in UAE

While answering questions about various VAT related issues, FTA on Wednesday said that the recently introduced VAT reverse charge mechanism on precious items such as gold and diamond is only applicable to commercial transactions/trading of these items between registered dealers.

VAT on Gold and Diamonds in UAE

Supplies by a registered VAT dealer to another registered dealer

As per the VAT rule, registered dealers trading in gold and diamonds and/or products made of these metals shall not charge VAT on supplies made to other registered merchants, as long as the recipient intends to use the inputs for manufacturing of gold/diamond products or to resell further. The tax in such cases will be paid by the registered recipient on the reverse charge basis. Read More

How to Pay VAT on Commercial Properties in UAE?


VAT at the rate of 5% is applicable to the sale and renting of commercial properties in the UAE starting from January 1, 2018. The buyer of a commercial property is liable to pay VAT by registering on the FTA portal. In case of a rental commercial property, the owner is liable to pay VAT. In this article, we discuss the procedure of making VAT payment to the FTA on the purchase of a commercial property.

Procedure to Pay VAT on Commercial Properties

If you have recently purchased a new property in the UAE for commercial use or renting purpose, you should pay VAT on the property value directly to the FTA. Follow the step by step procedure to make the VAT payment now. Read More

VAT Results in Reduced Mobile Phone Sale in UAE

VAT Results in Reduced Mobile Phone Sale in UAE

The recent research data revealed by International Data Corporation (IDC) shows that the total mobile phone shipments have decreased in both the UAE and Saudi Arabia following the introduction of the value-added tax (VAT). The research consisted mobile sale data for the first quarter.

According to the numbers released by the research company, the shipments of mobile phones during the first quarter of 2018 decreased by 14.7 per cent in the UAE and 5.4 per cent in the KSA as compared to the same period last year. The shipment of smartphones into the UAE also dropped by 4.6 during the period. Read More