Questions & Answers
Questions & Answers
4 available 4 • View allThe right way to charge the ultimate customers for VAT
3
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!

Feb 15, 2020
426
Can the supplier refuse to pay the VAT on a referral fee invoice and ask me to bear it?



1
Q: Last year I set up a Dubai mainland sole proprietorship company dedicated to interior design. One of the material suppliers I have specified (tiles) for a project agreed to pay me a referral fee of 10% of the end client order.
Now I have invoiced them that 10% + VAT, however, they don't want to pay the VAT. They suggest I deduct it from my own 10% if I am keen to produce a tax invoice featuring VAT.
Is this request legal?




Dec 4, 2024
105
Application of VAT for UAE based company giving service abroad
2
Q: We want to start a brokerage company in the field of industrial equipment. We are calling to work with Chinese companies.
Is the fee bill that we will establish from Dubai subject to any taxes? If yes, which ones?
Please, can you also send us the legal texts related to these dispositions?

May 9, 2019
798
Does an Abu Dhabi LLC entity need a license to provide oil and gas services in Ras Al Khaimah?




0
Q: We are an Abu Dhabi LLC registered entity and provide oil and gas services to several companies in Abu Dhabi. We have been asked to provide oil and gas services in Ras Al Khaimah.
Can we provide Oil and gas services in Ras Al Khaimah without creating a branch or separate legal entity registration in Ras Al Khaimah?





+1
Feb 20, 2025
93
Legal blog
3 available 3 • View allImportance of Corporate Governance and its Basic Principles 13
It is the first article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and the UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on the UAE regulatory framework on corporate governance.
Jun 26, 2019
3144
Economic Substance Law in the UAE: Ahead with Compliance and Governance 5
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.
Jul 24, 2019
909
UAE Launches World’s First E-Commerce VAT Refund System for Tourists 2
Before shipping their online purchases, UAE Tourists can now apply easily for VAT refunds through e-commerce platforms that are registered with the Federal Tax Authority (FTA). To confirm their eligibility at the time of purchase, they can simply provide the specifics of their travel documents and pertinent personal information.
Dec 19, 2024
182
Laws & Regulations
2 available 2 • View allFederal Decree-Law No. (8) of 2017 on Value Added Tax 3
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.
Aug 23, 2017
1752
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
33057

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Hello,
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How can we claim our money back if the cheque we received have bounced for insufficient funds? 0
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Who is supposed to pay for the transfer fee, the employee or the employer? 0
Hello
I joined my new company on February 26, 2025. Upon joining the new company, I asked HR if it was free to join the company, and she said yes.
After working with them for 1 month, I experienced a salary delay, and I had to go to the office to ask why there was a delay in my salary.
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Is it possible for a foreigner to get a divorce in Dubai? 0
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After 11 months of work, how many leave days is an employee entitled to? 0
Hello,
I want to inquire regarding my leave privileges. I am now 11 months in my company. How many leaves am I privileged to?
Based on Decree-Law No. 33 of 2021 regulating labour relations and its executive regulations, you are entitled to a paid weekly rest for not less than one day, as specified in the work contract or the work regulation.
The Council of Ministers may increase the weekly rest day stipulated in this article. The Decree-Law and its executive regulations also stipulate that you are entitled to an annual leave with full pay as follows:
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Now my question is: do I have 22 days I can use? Can someone explain to me in detail?
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Despite a waiver, the case is still with the public prosecution. Can I travel? 0
Hello,
I had a case regarding fraud by technical means, and we did a tanazul.
It was attested and submitted to the court, but the case still hasn’t been dropped and is now with the public prosecution.
What do I do now, as I need to travel urgently?
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How can we claim our money back if the cheque we received have bounced for insufficient funds? 0
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Who is supposed to pay for the transfer fee, the employee or the employer? 0
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Now my question is, who is supposed to pay for the transfer fee, the employee or the employer?
Apr 28, 2025
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Is it possible for a foreigner to get a divorce in Dubai? 0
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Can my old employer sue me for a non-compete clause that's only in the offer letter? 0
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Despite a waiver, the case is still with the public prosecution. Can I travel? 0
Hello,
I had a case regarding fraud by technical means, and we did a tanazul.
It was attested and submitted to the court, but the case still hasn’t been dropped and is now with the public prosecution.
What do I do now, as I need to travel urgently?
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How can we claim our money back if the cheque we received have bounced for insufficient funds? 0
We received a cheque which has now bounced. We have tried for over a month and a half now to get a new cheque from the person, and every day he says the next day.
We need the money now. We have been to the police station, and they said they can not do anything as the reason the cheque bounced is "Insufficient funds."
We have been to Al Barsha - Dubai Courts, and they said there is nothing they can do about it.
We are not sure what we can do. We need the money asap to pay our kids' school fees, let alone all the interest we have lost.
Apr 28, 2025
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Who is supposed to pay for the transfer fee, the employee or the employer? 0
Hello
I joined my new company on February 26, 2025. Upon joining the new company, I asked HR if it was free to join the company, and she said yes.
After working with them for 1 month, I experienced a salary delay, and I had to go to the office to ask why there was a delay in my salary.
That is when the HR told me she deducted my whole salary to recover the transfer fee.
Now my question is, who is supposed to pay for the transfer fee, the employee or the employer?
Apr 28, 2025
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Is it possible for a foreigner to get a divorce in Dubai? 0
Is it possible for a foreigner to get a divorce here in Dubai?
Apr 28, 2025
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Can my old employer sue me for a non-compete clause that's only in the offer letter? 0
Hi,
I was previously working in a company based in DMCC and have now moved to Hamriyah Free Zone. In my DMCC contract, there was no mention of a non-compete, but my offer letter includes one.
Now, in my new organization, if my old customers start to contact me for business, am I liable for any legal action from my previous employer?
Apr 28, 2025
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How can we claim our money back if the cheque we received have bounced for insufficient funds? 0
We received a cheque which has now bounced. We have tried for over a month and a half now to get a new cheque from the person, and every day he says the next day.
We need the money now. We have been to the police station, and they said they can not do anything as the reason the cheque bounced is "Insufficient funds."
We have been to Al Barsha - Dubai Courts, and they said there is nothing they can do about it.
We are not sure what we can do. We need the money asap to pay our kids' school fees, let alone all the interest we have lost.
Apr 28, 2025
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After 11 months of work, how many leave days is an employee entitled to? 0
Hello,
I want to inquire regarding my leave privileges. I am now 11 months in my company. How many leaves am I privileged to?
Based on Decree-Law No. 33 of 2021 regulating labour relations and its executive regulations, you are entitled to a paid weekly rest for not less than one day, as specified in the work contract or the work regulation.
The Council of Ministers may increase the weekly rest day stipulated in this article. The Decree-Law and its executive regulations also stipulate that you are entitled to an annual leave with full pay as follows:
- Thirty days for each year of your extended service.
- Two days per month in respect of any employee with more than six months and less than one year of service.
- Leave for parts of the last year of your service in case it is terminated before you use your annual leave balance.
Now my question is: do I have 22 days I can use? Can someone explain to me in detail?
Thank you!
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What can I do if I got a judgment in absentia for selling medicine without a license? 0
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They made a confession that they were working for me and made a false claim that they had transferred money to me. As I am outside the country, I came to the UAE to solve my case.
I got detained at the airport, and the CID asked me some questions. I mentioned they didn’t transfer me a single Dihram, so he let me go, as the case was already open for appeal.
In the first instance court, they gave me the same verdict, then I appealed and attached documents like bank statements and my company details, which were not mentioned before.
They gave a date for the judgment, but it was not issued, and they gave the next date. I have been suffering a lot for the last 3 months here in the UAE and for 6 months back home.
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Can they drop charges, or now the court decide only?
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Can I keep my daughter's physical Emirates ID if the custodian already has the digital copy? 0
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Can I keep my daughter's physical Emirates ID with me? I already provided the digital copy to the custodian, my ex-wife.
Or should I hand it over to her?
Apr 24, 2025
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What legal action can a company take to recover an amount from a non-paying customer? 0
Hello,
We are a building materials trading company based in the UAE. We supplied materials worth AED 50,000 to a customer around 8 months ago, but despite repeated follow-ups and reminders, no payment has been made to date.
We would appreciate guidance on the following:
1. What legal action can we take to recover the amount?
2. What documents should we have ready (e.g., delivery notes, invoice, emails)?
3. How long does the legal process typically take in the UAE for such cases?
4. Is there a recommended timeline or deadline after which legal steps should be initiated?
Thank you in advance for your advice!
Apr 25, 2025
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