Tax legislation in the UAE has helped build a strong collaborative relationship

Khalid Ali Al Bustani, Director-general of the Federal Tax Authority

dubai — The Federal Tax Authority (FTA) on Wednesday asked businesses providing exhibition and conference services to register in the VAT system, acquire a Tax Registration Number (TRN) and a licence from the FTA to recover taxes on their services.

According to FTA, refunds can be claimed for two types of services. The first is the grant of the right to access, attend or participate in a conference, while the second is the grant of the right to occupy space for the purpose of conducting a conference or an exhibition.

The FTA explained that according to the Cabinet Decision, six conditions must be met to be able to recover VAT on services provided for exhibitions and conferences: The supplier must request the refund on their tax return for the same tax period where the services were supplied; the amount claimed must be equal to or less than the tax imposed on the supply of services for exhibitions and conferences; the recipient of services must not have a permanent establishment or fixed establishment in the UAE; the recipient must not be registered or required to register for tax in the UAE; the recipient must not have paid tax to the supplier; and finally, the supplier must receive a written confirmation from the recipient corroborating the three previous conditions.

“Tax legislation in the UAE has helped build a strong collaborative relationship between the FTA and all tax stakeholders, including taxpayers and all relevant government bodies, in an effort to realise the objectives of the tax system in firmly maintaining the UAE’s lead on global competitiveness indexes,” said Khalid Ali Al Bustani, Director General, FTA. — waheedabbas@khaleejtimes.com