Will samples be subject to excise tax?

Samples of excise goods that are given away for free will also be subject to excise tax. Excise tax is not a transaction based tax so tax is due on the goods when they are released for consumption (i.e. enter free circulation) in the UAE, regardless of whether or not they are intended for sale.

How will Islamic finance be treated?

Islamic finance products are consistent with the principles of sharia and therefore often operate differently from financial products that are common internationally. To ensure that there are no inconsistencies between the VAT treatment of standard financial services and Islamic finance products, the treatment of Islamic finance products is aligned with the treatment of similar standard Read more about How will Islamic finance be treated?[…]

Will there be bad debt relief?

VAT registered businesses will be able to reduce their output tax liability by the amount of VAT that relates to bad debt which has been written off by the VAT registered business. The legislation includes the conditions and limitations concerning the use of this relief.

Will tourists also pay VAT?

Purchase of goods and services by tourists in the UAE will be subject to VAT. However, tourists will be eligible to reclaim the VAT incurred on their purchase of goods under the Tax Refunds for Tourists Scheme subject too meeting certain conditions.

What is a tax agent?

In Article 1, Chapter 1 of the Federal Decree Law Number 8 of 2018 or commonly known as the VAT Law, it clearly states there that a tax agent is:  “Any person registered with the Authority in the Register, who is appointed on behalf of another Person to represent him before the Authority and assist him in the Read more about What is a tax agent?[…]

What is the difference between internal and external audits?

Internal auditors are company employees, while external auditors work for an outside audit firm. Internal audit reports are used by management, while external audit reports are used by stakeholders, such as investors, creditors, and lenders. Internal audits are conducted throughout the year, while external auditors conduct a single annual audit. Internal auditors will examine issues Read more about What is the difference between internal and external audits?[…]

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