Some of the laws governing the UAE’s Value Added Tax (VAT) have been changed by the Ministry of Finance. The new rules will be in place as of January 1, 2023. In light of the GCC Unified VAT Agreement, the modifications have been made in accordance with international best practices. According to the statement, they are based on prior experiences, issues experienced by a variety of industries as well as suggestions from the appropriate parties.
Individuals are permitted to request an exemption from the requirement to register for VAT if all of their supplies are zero-rated or if they no longer make any supply other than zero-rated supplies. This provision is one of the amendments made to Federal Decree Law No. 8 of 2017 on VAT.
Zero-rated supplies are chosen by the taxing authority. They are supplies taxed at a rate of 0%.
Certain foods and beverages, exported goods, donated goods sold by charity stores, equipment for the disabled, and prescription medications are some examples of zero-rated commodities.
In accordance with the deadline established for issuing tax bills, other adjustments include establishing a 14-day timeframe for the issuance of a tax credit note to settle output tax.
Our firm, Mouannes International Service, will be pleased to assist you if you need additional information about the VAT adjustments in the United Arab Emirates.
For more information, please get in touch with us.
Tel: 04 381 2021