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ABU DHABI / WAM
The Federal Tax Authority (FTA) has determined three main categories of “eligible goods†for calculating Value Added Tax (VAT) on the basis of the profit margin scheme.
These are second-hand goods, meaning tangible movable property that is suitable for further use as it is or after repair; antiques, i.e. goods that are over 50 years old; and collectors’ items, such as stamps, coins, currency and other pieces of scientific, historical or archaeological interest.
The authority asserted that only those goods, which had been subject to VAT before the supply in question, may be subject to the profit margin scheme. The profit margin is defined as the difference between the buying and sel-ling price of an item and is inclusive of taxes.