UAE Cabinet issued Decree No. (52) of the year 2017 concerning the executive regulation of the Federal Law No. 8 of 2017 on value added tax, which outlines supply of goods and services in all cases, including supply in special cases, supply of more than one component and exemption related to legal supply. The regulation also defines the mandatory, optional tax registration or that liable to exceptions, tax group, as well as deregistration.
The regulations set out the rules with regards to supplies, taxes due on the date of purchase and the place of supply of goods such as real estate services, transport services, telecommunications services and electronic services, as well as profit margins and calculating and charging tax based on the profit margin earned. The executive regulations shall specify the exempted supplies, tax treatment of financial services, calculation of tax on specific supplies, calculation of income tax payable, the non-refundable input tax and the method of dividing input tax.
The law also summarises the capital assets scheme, adjustment of tax after the supply date, tax invoice, tax credit notes, tax period, tax returns and reclaiming of tax as well as carrying forward the excess of recoverable tax and tax recovery. The law also stipulates the provisions of tax recovery, violations and penalties, tax evasion in addition to general provisions and closing provision. The decree shall be published in the Official Gazette and will come into effect as of January, 1st 2018.
UAE Cabinet Decision (52) of 2017 on the executive regulations of the Federal Decree Law No. (8) of 2017 on Value Added Tax