Still confused about VAT exempt and zero rate? It could cost you!

January 22, 2018 10:42 am


Find below a VAT public awareness infographic.

1- Supplies and Services Subject to Zero-Rate Tax

2- Supplies and Services Exempt from Tax

What is Zero Rate?

If you make Supplies at the xero rate, this means that goods are still taxable but the rate of VAT is 0%.

You will need to record any 0-rate supplies in your VAT account and report them on your tax returns

Read: VAT and other Dirhams at work: Any fears for UAE economy?

Read: Abu Dhabi rent and sales prices: Full year 2017 and 2018 predictions

What is exempt?

Exempt supplies are not taxable supplies for VAT purposes.

VAT is not charged on exempt supplies and the supplier cannot recover any VAT on expenses incurred in making those exempt supplies.

Exemptions will also be strictly applied as they are an exception to the normal rule that VAT should be charged.

 

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Hadi Khatib
By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.



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