Do your businesses grant VAT exemptions ?
If your businesses are exempting any individual or organization, be cautious! – warns FTA. The authority reminded that all registered businesses have to collect value added tax (VAT) on all taxable transactions from customers. So, be careful while allowing VAT exemptions. You have to be careful that not to exempt any items taxable under the UAE tax rules.
You have to remain vigilant and precise with your business transactions. All businesses must be careful while granting exemptions from VAT as the authority clearly said that none of such transactions will be considered outside the scope of tax, unless it’s explicitly stated in the legislation or announced by the Ministry of Finance or the Federal Tax Authority.
VAT exemptions could burn your own pocket
If you grant concessions without properly checking the classifications, it will be considered illegal and you will be liable for any tax not collected from your customers. So, again, be careful with VAT exemptions .
FTA will issue periodic notifications in case of any updates on the various tax categories, according to the UAE laws and cabinet decisions. Clear all your doubts regarding VAT. GET YOUR FREE COPY OF ’ESSENTIAL GUIDE TO VAT’
If you have any doubt during this process call us on 00971-4-331-2332. 00971-4-331-2332