Different rates for courier, freight

questioner’s company would be required to charge VAT at 5 per cent to its contractual customer, irrespective of the type of building, for installation made in or after January 2018.

TRN for warehouses e have two warehouses. One is inside Sharjah Airport Free Zone and the other is in Sharjah Industrial area. They have different trade licence numbers. Our activities happen outside these warehouses. We are using the SAIF Zone warehouse to store goods and transfer stocks only from the SAIF Zone to the other warehouse. During VAT registration, we didn’t consider the warehouse in the industrial area as coming under VAT. Should I add this under the same Tax Registration Number (TRN)?

W Joji Verghese

Answer

According to Shiraz Khan, head of Al Tamimi & Company’s Middle East tax practice, assuming that the businesses of both warehouses are branches of the same legal entity, they will be treated as a single person for VAT purposes. Therefore, the same TRN will be applicable to both branches. The questioner should request the Federal Tax Authority that he wishes to upload the trade licence of the branch that is carrying out activities in the industrial area and amend the registered address to the address of the warehouse in that location since this is the branch carrying out the primary business activities.