Decriminalization of Bounced Cheques | All You Need to Know
In an effort to bring international best practices to the UAE economy, the central bank has announced amendments to the new transaction law.
We have already touched upon this in our previous blog. This updated law will come into effect on January 2nd 2022. Changing regulation surrounding bounced cheques will help the SME’s with their cash flow management.
These updated laws on bounced cheques will bring up UAE’s business environment up to international standards. This will make the UAE a much more attractive place to invest in.
China-UAE Trade Agreements
The Chinese President Xi Jinping’s recent visit to UAE is set to make gradual, yet large economic change in UAE. Both countries spoke about boosting different industries and have made 13 strategic agreements. These agreements include construction of embassies and cultural centers, advancing energy cooperation, e-commerce ties, numerous investments, and the infamous Belt and Road Initiative all of which the UAE government strongly supports, and would bring an inflow of income into the UAE.
Business Ownership Law To Boost Investments
UAE’s most recent investment law has become the talk of the town as it opens up business regulations further and allows 100 percent ownership to foreign investors in certain onshore business sectors. This law is currently awaiting the FNC’s approval and is planned to be introduced in the last quarter of this year.
Business Friendly Changes in Regulations
UAE has taken numerous steps recently for ease of business, by reducing visa requirements for businesses hiring expatriate employees. This not only cuts down on any additional expenses to hire an employee for a business but also increases bureaucratic efficiency.
Clarity on emirates wise classification of sale
For the purpose of filing for VAT, sales will have to be classified on the basis of each emirate.
VAT on Constructing your own house
All the construction related input VAT can be reclaimed if :
- The individual is a UAE national.
Warranties – VAT
What is a warranty?
A guarantee issued by the retailer or manufacturer to the consumer, promising a repair if necessary within a specified period time. This blog is briefly about how warranties are effected by VAT implementation.
Profit Margin Scheme
When second-hand goods are purchased from a non VAT registered user by a VAT registered user, purely for the purpose of resale, the VAT registered user can include the VAT on the profit margin.
Zero-rating Transport services
When goods are exported out of UAE they are Zero-rated. However, the following services related to international transport are also zero-rated.
Businesses that satisfy certain requirements provided by the legislation (such as being under the same ownership and located within the same GCC country) will be able to register