Q: Hi, We are a third party portal acting as a broker. We are selling products in the UAE on behalf of retailers. However, we invoice end users including the VAT. Our model is based on commission which means that X% amount of net amount will be retained and the remaining will be transferred to retailers. How to handle this legally between us and the retailers: 1. Do we apply VAT? How do we transfer to retailers as we cannot invoice them? 2. Can we claim back the VAT as the initial retailers have paid VAT on products already? Thank you

Q: Hello I want to open an online store (e-commerce) in Dubai, it will be online clothing store and I will receive the clothes from China by courier and sell it in Dubai. Customers can complete the payment with Pay Pal. So I would like to know if I need to register this online store, and if yes, what's the procedure. Since the items will be shipped from overseas, then maybe I do not need even to register it. Please advise

Q: Hello. I’m seeking advice on the legal implications of running an online pharmacy based entirely offshore (financially and procedurally) and selling only one FDA-approved product to the UK and EU, but with my residency remaining in the UAE.

Q: Hi Nikhat, How are you? I read your reply on a VAT query and I hope I could get clarification on my confusion as well. You see we are agents (in business set-up consultancy). Basically, we are dealing with another business set-up consultant rather than going directly with the authority, but we wish not to disclose this to our clients that we are dealing with another business set-up consultant. Now, my question is that the other consultant charges VAT to us but the invoice is addressed to the ultimate customer name. So my question is if I charge on top with what they charge, like if their PRO fee is AED 2,000 and, on my side, I charge PRO fee of AED 4,000, should I be charging VAT on the whole AED 4,000 or should I have to break it down and charge only on my top-up since this was not my supply? Thank you!

Q: My company is in Gibraltar. I also have a company in Ajman free zone. My Ajman company will provide remote services such as accountancy, IT support, and sales for the Gibraltar company. There is no transport or handling of goods, and the Ajman company will only provide services. The staff salaries will be about 400,000 AED. My staff will be based in India. My Ajman company will be basically used to pay salaries to staff in India. Will my Ajman company have to pay corporation tax? (because it is running and managing the company in Gibraltar) Do I have to register for VAT? Do I have to keep accounts? What do I need to register as a service?

Q: Dear sir/madam, What is the statute of limitation for tax crimes in the UAE? Is tax crime considered a felony or misdemeanor?

Q: Hi Guys, I am a tax resident and a registered UAE LLC business owner in Ras Al Khaimah. I specialize in party planning and event organizing, and I will be conducting events in the UAE. Do I have tax obligations to the USA before the money lands in my UAE Emirates NBD bank account? I am seeking a lawyer with international experience to provide insights and potentially collaborate with us. Thanks for all your help! Best Regards,

Q: Hello, Kindly advise: We are selling goods and have a trade license from Dubai Silicon Oasis Free Zone, selling to a company in Umm Al Quwain. Should we add VAT to the invoice?

Sometimes this seems very simple to incorporate a company in the UAE, however, investors must seek professional advice before taking this important business decision to avoid any future legal implications.

Tax evasion is a serious offence on the local and international levels that had to be controlled and regulated with new laws, in an international effort to combat this violation. As a part of the international community, the UAE had issued a law (Cabinet of Ministers Resolution No. 31 of 2019) in the same direction requiring all in-scope UAE entities to have demonstrable economic substance.

The introduction of the Doctrine in the UAE brings the UAE in line with other jurisdictions that have recently issued economic substance legislation and affirms the UAE’s commitment to addressing concerns around the shifting of profits derived from certain mobile business activities to “no or nominal tax jurisdictions” without corresponding local economic activities.

تأتي هذه المقالة ملخصاً موجزاً لإجراءات المنازعات الضريبية في دولة الإمارات العربية المتحدة على النحو الذي رسمها المرسوم بقانون اتحادي رقم 28 لسنة 2022 بشأن قانون الإجراءات الضريبية الاتحادي.

The Federal Decree Law on Value Added Tax (VAT Decree-Law), outlines the tax scope, rate, responsibility for tax, supply of goods and services in all cases, including supply in special cases, supply of more than one component, supply via agent, supply by government entities and cases of deemed supply.

The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.

The Executive Regulations set the rules and procedures for implementation of the Federal Decree-Law No. (8) of 2017 on Value Added Tax in the United Arab Emirates. The Regulations define the registration process, zero-rate and exempt supplies, calculation of due tax, tax returns, recovery of excess tax, etc.