“Federal Taxation” defines the criteria for carrying “additive” for goods and services

MediaI n – Dubai 3 March 2018 WAM
The Federal Tax Authority has asserted that the value of value added tax on goods and services that are partially or fully utilized after the introduction of the tax in 2018 depends on several criteria that determine whether the recipient of the service or the recipient of the goods is obliged to pay the tax or that the business sectors suppliers of goods Service providers are tax-liable.
In an awareness message issued today, the TRA said that according to the provisions of the Federal Law No. 8 of 2017 on the value added tax and its executive regulations, the recipient of the service or the recipient of the goods is responsible for paying the tax on goods and services received in part Or wholly after the introduction of the tax if the contract concluded before the beginning of 2018 stipulates that the amount paid is not tax inclusive.
She pointed out that the business sectors of the suppliers of goods and service providers bear the value added tax on goods and services that are delivered in whole or in part after the introduction of the tax – that is, during 2018 – which was contracted before the beginning of the current year in which the tax became effective if the text The contract stipulates that the amount paid is inclusive of the tax. If the contract does not include a text on the tax, it is the responsibility of the supplier if the customer is a non-registered consumer of the tax. If the customer is registered for tax, the agent is not taxable if the supplier checks the customer’s ability to recover the tax According Article / 70 / of the Regulations of the decree of a federal law regarding VAT.
She pointed out that in all cases the supplier remains responsible for calculating the tax and payment to the Authority.