United Arab Emirates Tax Agency Posts VAT Guide on Profit Margin Regime in English

The Emirati Federal Tax Authority Jan. 5 posted a VAT guide, in English, on the profit margin regime. Topics covered include: 1) the scope and purpose of the regime, which allows VAT calculation on the profit margin for eligible goods rather than on the full selling price; 2) eligibility criteria for goods and transactions, including second-hand goods, antiques, collectors’ items previously subject to VAT, purchases from non-registrants or taxable individuals applying the regime, and goods with blocked input VAT recovery, as well as conditions for applying the regime; 3) detailed procedures for calculating the profit margin and VAT, including examples ...