Application of VAT for UAE based company giving service abroad

Question

Q: We want to start a brokerage company. We are calling to work with Chinese companies. Is the fee bill that we will establish from Dubai subject to any taxes? A: You should register for VAT to obtain VAT exemptions for the import of goods and services. You will be eligible to raise VAT invoice…

Hari Wadhwana · Accepted Answer

Dear Sir/ Madam,

Thank you for getting in touch with me on this.

The relevant legislation concerning VAT is covered under Federal Decree No. 8 of 2017. The said legislation by way of Article 2 states "Tax shall be imposed on... 1. Every Taxable Supply and Deemed Supply made by the Taxable Person."

Taxable Supply is defined as "A supply of Goods or Services for a Consideration by a Person conducting Business in the State and does not include Exempt Supply."

Your company may not be required to register for VAT if it does not meet the threshold of Article 13 of the said law.

In summary, I believe you should register for VAT to obtain VAT exemptions for the import of goods and services. Similarly, you will be eligible to raise VAT invoice on the supply of service/goods made out of the UAE.

I trust you will find this helpful.

You can get in touch with me or contact on 052-9495731 for further assistance or clarification.

Regards,

Hari Wadhwana

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