The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
DUBAI / WAM
The Federal Tax Authority (FTA) has clarified the criteria that determine whether it is the supplier or end-consumer that bears the cost of the VAT on goods and services set to be delivered fully or partially in 2018, but had been contracted before the implementation of VAT.
In a statement, the Federal Tax Authority clarified that according to Federal Decree-Law No. (8) of 2017 on VAT and the Executive Regulations, the only case where consumers are directly responsible for paying VAT on received services that are delivered fully or partially after VAT went into effect, is where the contract, issued before Jan 1, states the amount due is exclusive of tax. Suppliers will be liable for VAT in two cases: If contract states that the amount received against the good or service is inclusive of VAT; or if contract issued to the consumer did not refer to VAT.