FTA clar­i­fies cri­te­ria for date VAT is ac­counted for

The Gulf Today - Business - - FRONT PAGE -

ABU DHABI: The Fed­eral Tax Au­thor­ity (FTA) has con­firmed that the date of sup­ply for Value Added Tax (VAT) with re­gard to In­de­pen­dent Di­rec­tors’ ser­vices is de­ter­mined ei­ther in ac­cor­dance with the gen­eral rules or the spe­cial rules, depend­ing mainly on whether the fees for the said di­rec­tors were known from the out­set or not.

Where such fees are known from the out­set, the date of sup­ply shall be de­ter­mined in ac­cor­dance with the pro­vi­sions of Ar­ti­cles (25) and (26) of Fed­eral De­cree-law No. (8) of 2017 on VAT, depend­ing on whether or not there will be pe­ri­odic pay­ments. If such fees are not known from the out­set, they shall be de­ter­mined upon con­clu­sion of the An­nual Gen­eral Meet­ing and the date of sup­ply shall be es­tab­lished only when such fees be­come known.

The date of sup­ply pre­scribes the point in time when a VAT Regis­trant needs to ac­count for VAT, the Au­thor­ity ex­plained in the Pub­lic Clar­i­fi­ca­tion on the Date of Sup­ply for In­de­pen­dent Di­rec­tors. This is part of the “Pub­lic Clar­i­fi­ca­tions” ser­vice avail­able on the FTA’S web­site to in­tro­duce tax­pay­ers to all as­pects of the tax sys­tem and fa­cil­i­tate com­pli­ance.

The FTA ex­plained that in in­stances where the Board Fees are known at the out­set and in­volve pe­ri­odic or mul­ti­ple pay­ments, the date of sup­ply would be de­ter­mined as per Ar­ti­cle (26) of Fed­eral De­cree-law No. (8) of 2017 on VAT, where the date of sup­ply would be the ear­li­est of the fol­low­ing three: The date of is­suance of the tax in­voice; the date the pay­ment is due as shown on the tax in­voice; and the date of re­ceipt of pay­ment. If 12 months have passed from the date of pro­vi­sion of ser­vices and none of the afore­said events has oc­curred, the date of sup­ply will be trig­gered at the end of the 12th month.

As for the in­stances where Board Fees are known at the out­set but there are no pe­ri­odic or mul­ti­ple pay­ments, the date of sup­ply would be de­ter­mined as per Ar­ti­cle (25) of the Fed­eral De­cree-law No. (8) of 2017 on VAT. Ac­cord­ingly, the date of sup­ply would be the ear­li­est of the fol­low­ing three: The date of is­suance of a tax in­voice; the date on which the pro­vi­sion of ser­vices was com­pleted; and the date of re­ceipt of pay­ment.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.