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.
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.
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
The provisions of the newly issued federal law on taxation has authorized the Federal Tax Authority (FTA) with the legal right to perform a tax audit on any business to determine their compliance with the provisions of the relevant laws.
* The taxable person or the legal representative has to register on the Federal Tax Authority online portal.
* The online process will be simple and take about 15 minutes.
* The FTA portal will open soon on voluntary basis, and Q4 will be a compulsory basis.
Below are few things to remember while filing tax returns:
Sometimes FTA might conduct tax audits, and ask you to pay more tax. In such cases if you feel you were unfairly charged more tax, you can challenge the Federal Tax Authorities decision.
There are two types of penalties which can be imposed for failing to comply with the below conditions respectively :
1.Intended to address noncompliance.
What is supply?
–If it meets the following requirements it is a supply in UAE: