I run a B2B business consultancy and acquire consistently invoiced my UAE barter in US dollars rather than dirhams. Is this accustomed beneath the new VAT laws and what capacity absolutely should my invoices include? GH, Dubai
Firstly you allegation acutely appearance the words “Tax Invoice”, rather than aloof “Invoice”. You allegation to accommodate your own aggregation name, registered abode and Tax Registration Cardinal (TRN). In accession you allegation your customer’s aggregation name, abode and TRN.
If they are not registered for GCC VAT, again you do not allegation to accommodate their TRN. However if they are registered and you do not accommodate it, they may not be able to accost the VAT you acquire answerable them. Similarly don’t acquire an balance from a supplier charging you VAT area they acquire not included your TRN, unless the balance is for beneath than Dh10,000 whereby altered rules administer for abate bulk invoices.
Your invoices allegation appearance a consecutive or altered number, which allows the identification of the sequences of invoices, and the date of balance additional the date of accumulation if it’s altered from the balance date. For anniversary balance band you allegation accord a description of the service, the quantity, assemblage price, absolute payable in dirhams and the bulk of VAT answerable on that line, for archetype 5 per cent. Interestingly you do not allegation to appearance the VAT in dirhams answerable on every line. In the balance arbitrary you allegation accommodate the absolute bulk payable in dirhams and the absolute VAT payable.
You are acceptable to balance in a bill added than dirhams but if you do, you still allegation to appearance all of the advice aloft in dirhams as able-bodied as in the balance currency. For about-face from USD to AED you allegation to use an barter bulk accustomed by the Central Bank of the UAE and appearance the bulk acclimated on the invoice. Wherever accessible try to balance in dirhams as it avoids the added complication that adopted bill invoicing introduces.
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I use a aggregation to abetment me with my annual barter authorization renewal. They pay aggregate on my account and in about-face balance me for the licensing anatomy costs, their out of abridged costs and the fee for their services. They acquire added VAT for their casework but for the amounts paid over to my licensing anatomy and for their recharged costs there is no VAT charged. I’m assertive they acquire paid VAT on the licensing anatomy fees and recharged costs but after them assuming VAT on their balance I’m not abiding what I can accost or if I am advantageous VAT twice. Is their invoicing to me correct? MM, Abu Dhabi
It’s absolutely a complicated affair from a VAT angle area a third affair is authoritative payments on your behalf. Assuming they are VAT registered, the 5 per cent VAT on their fees is correct.
For the licensing anatomy fees and out of abridged costs you allegation to actuate if these are classified as disbursements or recharged expenses. These two are advised actual abnormally from a VAT charging perspective.
A bulk is about area the balance is fabricated out to your company, is paid on your behalf, and you accustomed the account of the service. In this case the abettor aggregation is finer aloof acting as your agent. They should allegation you the bulk they paid on your account including the VAT, but not appearance it as a vatable account on their balance to you. Because it’s not a bulk to their business they can neither allegation you the VAT, nor accost the VAT answerable by the licensing body.
One affair to be alert of is that for you to be able to accost the VAT answerable by the licensing anatomy you allegation acquire a VAT-compliant invoice, addressed to your aggregation from the licensing anatomy acknowledging the cost.
If the abettor aggregation acquire costs as allotment of accouterment their account to you these are classified as recharges rather than disbursements. Examples of these types of costs would be travelling, printing, bagman or blast costs. These costs, whether apparent alone or accumulated on the invoice, should be invoiced as the VAT absolute bulk and again acquire VAT added. You should not be invoiced the VAT across-the-board bulk and again acquire a added 5 per cent VAT added. Interestingly your supplier allegation add VAT to these recharged costs alike area there was no VAT originally answerable to them, for archetype taxis, which are VAT absolved bounded commuter transport, should acquire VAT added back it is recharged it to you. You can again accost this as continued as it’s appropriately included on a VAT-compliant invoice.
Lisa Martin, a accountant accountant with over 20 years bartering accounts experience, is the architect of accounting, auditing and VAT consultancy, The Counting House. Email any VAT queries to [email protected]
Updated: February 19, 2018 01:59 PM
Vat Invoice Sample Uae – vat invoice sample uae
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