Chetan Suri

<p><strong>UAE VAT UPDATES</strong></p> <p><strong>Key points of clarification provided by FTA on some issues.</strong></p> <p>&nbsp;</p> <p><strong>1. Tax invoices</strong></p> <p>In case of simplified tax invoices, there is no requirement to show the net value of line item.</p> <p>In case of full tax invoices, line items have to show tax value and net value, it is not mandatory to show the gross value for each line item.</p> <p>Tax invoices issued in foreign currency must show the tax amount converted to AED and the exchange rate used for conversion.</p> <p>Rounding on the Tax invoices should be performed on line item basis to the nearest fills.</p> <p>&nbsp;</p> <p><strong>2. Public transport: (point covers means of transport not transportation services)</strong></p> <p>Only buses or trains which are designed or adapted to be used for the mass transport of individuals shall be qualified to be supplied at zero rate.</p> <p>That means, means of transport which are used for school students or employees of a business, do not meet the conditions. Thus, shall be subject to VAT.</p> <p>&nbsp;</p> <p><strong>3.&nbsp; Transport services:</strong></p> <p>Qualifying means of transport means vehicles which are designed or adapted for transport of passengers rather than for transport for public transportation.</p> <p>Thus, transportation service by school bus and for employees are also exempt.</p> <p>&nbsp;</p> <p>&nbsp;</p> <p><strong>4. Use of exchange rate in case import of services:</strong></p> <p>UAE central bank exchange rates of the date of invoice issued by the party.</p> <p>&nbsp;</p> <p><strong>5. Import of goods:</strong></p> <p>Rate taken by custom in box 6 is correct. There is no need to adjust it in box 7 for exchange rates difference between taken by custom and UAE central bank.</p> <p>&nbsp;</p> <p><strong>Source: FTA Public Clarifications</strong></p>

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