DED fixes dirham fractions over VAT
ABU DHABI: Abu Dhabi Department of Economic Development (DED) has cancelled its previous decision to adopt a mechanism for dealing with dirham fractions in the value added tax (VAT) bills by bringing the available dirham fractions to 25 fils if they are 10 or 5 fils.
The decision comes primarily in response to consumers’ calls to protect their rights in getting back dirham fractions remainaing in the VAT bills, particularly after the UAE Central Bank has confirmed the availability of all dirham denominations in the local market and expressed its readiness to issue new coins if needed, said Khalifa Bin Salem Al Mansouri, Acting Undersecretary of Abu Dhabi DED.
Al Mansouri clariied that DED’S previous decision, which authorised sale outlets to collect dirham fractions after calculating the VAT in their bills was based on Article 61 of the Value Added Tax Law.
Underscoring the necessity for Abu Dhabi sale outlets to abide by Abu Dhabi DED’S new decision, Al Mansouri said the department’s team of inspectors would carry on ield inspection campaigns in all Abu Dhabi sale outlets to ensure that a sound tax collection mechanism is used.