Updating and fta
Profit Margin Scheme: Only those goods which have previously been subject to VAT before the supply may be subject to the profit margin scheme.
As a result, stock on hand of used goods which were acquired prior to the effective date of Federal Decree-Law No.
Businesses are required to use UAE Central Bank rate on any tax invoice issued in a currency other than the UAE Dirham from this date onwards.
Input tax can be claimed on hospitality expenses only if it includes the basic amenities provided to the employees.
There will be no need to rework tax invoices issued prior to , provided they used exchange rate from any of the reliable source consistently.
What are the recent clarification issued on Profit Margin Scheme?
Non-Recoverable Input Tax – Entertainment Services: VAT incurred on any costs which are used for a genuine business purpose, or which are incidental to a business purpose e.g.
food and drink provided during a business meeting, shall be recoverable (subject to normal VAT recovery rules).