Last week we attended a VAT Session with the FTA, and below are some of the takeaways that might be related to your business.
  1. So far, 300,000 UAE businesses have registered.  There are a number of businesses that have not received their VAT certificate yet.  However, in order to do business, you do not need the certificate.  All you need is the TRN and knowing your tax reporting period.  Companies should not mandate getting a VAT Certificate from a supplier in order to do business with them.
  2. Companies with monthly tax periods must file and pay by Feb 28th.  The VAT Report form will be available as of Feb 1st.
  3. In case of liquidation, or in case of having multiple TRN’s, some companies can start “De-registration” request starting on Feb 1st.
  4. Currently, the FTA and DED are issuing warnings to businesses that are issuing incorrect invoices (mainly retailers).  However, very soon, there will be penalties issued.
  5. Supply of Real Estate (Buying and Leasing property) inside a Designated Zone will be considered Out of Scope.  This is a new clarification.
  6. Spare parts of Zero Rated Medical Equipment and Medicines are NOT zero-rated.  Businesses should pay the VAT and deduct it on their tax return.  An item must be on the Ministry of Health certified list in order to be Zero Rated.
  7. Discounts offered on an invoice must be treated based on the offer or contract.  If there is nothing in the offer or contract that specifies what the discount applies to, the discount is applied on a pro-rata basis across all items on the invoice (even if some are zero rated).

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