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: We are purchasing some taxable material from the UAE, and our main contractor agrees to pay this material cost on behalf of us. So, in which name should the supplier issue the Invoice, the name of our main contractor or our name? And also please clarify Input Tax Claim method.

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: 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?

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 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.