The FTA emphasized the importance of reporting e-commerce supplies in its VAT Public Clarification VATPO33 published on February 24, 2023. Businesses falling under the new taxable regime, known as “qualifying registrants,” must deal with sound and service supply exceeding AED 100 million. Starting from July 1, 2023, eligible registrants must record e-commerce supplies in box 1 of the VAT Return based on the Emirate where clients receive the goods or services, and keep necessary supporting documentation. It is crucial for businesses to determine if they are subject to the new reporting requirements to avoid errors and penalties.
Source N R Doshi & Partners
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