Key amendments – UAE VAT Laws

Are you an entrepreneur or business owner planning to set up a business in Dubai? or have you already set your foot in UAE business sphere? Being a part of the business world, you would already be aware of VAT laws; but  we would like to update you on the topic to add to your knowledge.

Recently, Dubai UAE has amended its VAT laws and as an entrepreneur, you must be aware of them.

Here we provide a quick brief for the recent VAT amendments which are as follows –


1.Registration Exception: 

Article 15 – Registration exception has now been extended to cover persons already registered for UAE VAT.

AP Tip – Registered taxable persons subject to fully zero-rated supplies can revisit their case and apply for an exception now


2. Place of supply: 

Article 27 – the place of supply of goods that includes import or export, should be considered as in the UAE, where the transfer of title takes place in the UAE.


3. New zero-rated supplies: 

Article 48 – Imports of:

  • Means of transport for passengers and goods
  • Aircraft or vessels designated for rescue and assistance by air or sea
  • Crude oil and natural gas
  • Health care services, and related goods and/or services

AP Tip – Above importers shall ensure they levy tax at zero rates instead of the standard rate. However, have clear and complete documentation.


4. Domestic Reverse Charge (DRC): 

Article 48 – The DRC will apply only to ‘Pure Hydrocarbons’ instead of any kind of Hydrocarbon earlier.

AP Tip – Suppliers of other kinds of hydrocarbon shall ensure they account for VAT at the standard rate.


5. Tax invoice and Tax credit note:

Article 67 – The time limit for the issuance of a valid tax invoice of 14 days from the date of supply has been extended to supplies that include periodic payments or consecutive invoices. Previously, there was no such time limit.

Article 62 – time limit of 14 days for the issuance of a valid tax credit note. Previously, there was no such time limit.

AP Tip – Upgrade and update your system to ensure the above are issued within 14 days of the triggered event.


6. Statute of limitation:

Article 79 – the FTA will have an additional four years to undertake an audit providing that it has issued a notice for audit or assessment before the expiration of the general statute of limitations of five years.

Further, the FTA will have an additional one year to undertake an audit if a voluntary disclosure (VD) is filed by the taxpayer during the fifth year from the end of the relevant tax period. VD will not be permitted after five-year from the end of the relevant tax period.

AP Tip – Review and ensure all your past VAT filings are in order and corrections are made at the earliest.


We hope this updated information adds value to your knowledge of VAT and makes you carry on your business with greater proficiency. For more information, contact us now.

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