Article 1 – Definition

Introducing a new definition of virtual / digital assets, this clarifies how VAT applies to transactions involving cryptocurrencies and other digital assets , helping to provide a regulatory framework for businesses and consumers.

Article 5 – Exceptions related to Deemed Supply

Transactions between government entities or charities shall not be considered as deemed supply if the total value of output tax payable does not exceed AED 250,000 during a period of 12 months.

Article 23 – Profit Margin Scheme

This Clarifies that the ‘purchase Price’ includes , in addition to the price of the Good , any costs and fees incurred  to purchase the good.

Article 30 – Zero – rating the export of goods

In the case of direct or indirect export, the exporter shall retain any of the following documents :

• Custom Declaration (BOE) and Commercial Evidence (Air waybill / sea waybill / Land waybill / Manifest )
• Shipping Certificate (issued by sea , air or land transport companies and agents ) and Official Evidence (Export Certificate / Clearance certificate by custom department )
• A customs declaration Proving that the goods are under customs duty suspension, in case the goods are under customs suspension

Article 33 (2) – International Transport

Zero – rating applies to services supplied in connection with international transport services for passenger or goods , only if the services are supplied to the supplier of the transport services.

Article 35- Zero rating goods and services in connection with means of transport

This outline services related to operating , repairing, maintaining or converting transport means, which apply only if :

• Repair services are performed on board the transport.
• Maintenance services , including inspection, testing , cleaning and repainting , are done on board.    

Conversion services ensure the transport remains compliant with Article 34 after conversion.

Article 42 – Treatment of Financial Services

Article 42(3) now specifically exempts these services from VAT.

• Investment Fund management services (42) (3)
• Transferring ownership of digital assets , including cryptocurrencies (retrospectively from January 1, 2018)
• Converting digital assets (retrospectively from January 1,2018)

Article 46 – Tax on Supplies of more than One Component

This has been amended to establish tax treatment based on the overall nature of a supply when no main component is included in a composite supply.

Article 53 – Non – recoverable Input Tax

This now enables the recovery of input VAT for health insurance, including enhanced coverage for employees and their dependents up to one spouse and three children under eighteen.

Article 58 – Adjustments under the capital Assets Scheme

This clarifies the end of the tax year in different scenarios , including tax registration cancellation and changes in tax group membership , referencing Article 57 of the UAE VAT law for apportionment.

Article 58 adjustments under the Capital Assets Scheme

This now includes clause 17 , stating that the first tax year for a self – developed capital asset is the year its first UAE. In simple words when to start accounting for VAT on a self developed capital asset.

Article 59 – Tax invoices (Timeline )

• Simplified Tax Invoices : Must be issues on the supply date.
• Summary Tax invoice : Must be issued within 14 days after the end of the month in which the supply occurred.

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