Before explaining in details let us understand one very important point that is VAT implications will only arise where the consideration paid is as a result of supply of goods and services. No supply no VAT and the transaction will fall outside the s...
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Before going to the discussion let’s understand when VAT is applicable. VAT is a tax that is imposed on import or supply of goods and services. Or in other words in order for an income VAT is applicable only when it is in return of some supply of Goo...
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Why it is important to determine date of supply for independent directors? The answer to the question is very simple because VAT needs to be accounted for in the same month or quarter where the date of supply falls. Possible Scenarios: Director Free ...
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Article will explain in detail about VAT treatment of farm houses and Farm land for the purpose of understanding. Tax Treatment of Different Types of Land: Bare land – Tax Treatment : Exempt from VAT – Article 52 of Cabinet Decision 0f 2017 Residenti...
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Relevant Section of Law: Article 34 of the Cabinet Decision No. 52 of 2017: Certain means of transport The supply of the means of transport shall be subject to the zero rate in the following cases: A supply of an aircraft that is designed or adapted ...
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Relevant Section of law: Article 59 of Cabinet Decision No. 52 of 2017: Tax Invoices Summary: In all cases where taxable supply is made it is mandatory to issue tax invoice. There are two type of tax invoices acceptable. (i) Normal Tax Invoice (ii) S...
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Relevant Section of Law: Article 53 of the Cabinet Decision No. 52 of 2017: Non Recoverable Input Tax Summary: VAT on Incidental or Genuine Entertainment expenses is recoverable. Whereas if the hospitality itself becomes an end itself or reason to at...
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Federal Tax Authority issued Public clarification regarding use of exchange rate that was a question of great concern for business engaged in import and export activities: Relevant Reference to the Law: Article 69 of Federal Decree-Law No. (8) Of 201...
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Main Issues: Accommodation Provided to labor shall be classified as Residential or Serviced accommodation Services Provided in addition to the accommodation shall be treated a single composite supply or mix supply Impact on VAT Treatment of above two...
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Before discussing clarification issued by Federal Tax Authority regarding Profit Margin Scheme it is important to understand what is Profit Margin Scheme? Profit Margin Scheme: Profit Margin scheme is an option available to businesses where they are ...
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A general perception regarding VAT is that any payment that businesses made to each other should have VAT applicable on it disregarding the nature of payment. However the aforesaid perception is totally wrong. Federal Tax Authority has issued public ...
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