- Tax agents in the UAE welcome the new Public Clarification (VATP029) issued by the Federal Tax Authority
- Reverse charge mechanism applies to the supply of gold by registrants in the UAE
- VAT on services must be imposed if supplier charges separately for gold prices and making services
- Reverse charge mechanism can only be applied to gold products and not services
- Conditions must be met for recipient to calculate VAT on gold received
- Single composite supplies of gold items qualify for reverse charge mechanism if conditions are met
- Adequate supporting documents must be retained by both supplier and recipient for single composite supplies applying reverse charge mechanism
Source: jcauaeaudit.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
