The Swiss Federal Tax Authority publishes guidelines for foreign companies

The UAE's Federal Tax Authority has issued guidelines allowing foreign companies to obtain a refund of VAT, provided that four conditions are met, the regulator continuing to publish and clarify the tax clauses. .

"The first condition is that foreign companies must not have a place of establishment or permanent establishment in the UAE or in any of the GCC member states applying VAT," said the company. 39, authority in a statement.

"Secondly, these foreign companies must not be a UAE taxable person. Thirdly, they must also be registered as an establishment with a competent authority of the country where they are established; and finally, the fourth condition is that they must come from a country that applies VAT and that also provides VAT refunds to UAE companies in similar circumstances. "

___________

Read more:

Taxpayers in the United Arab Emirates and Saudi Arabia: get ready for official tax audits in 2019

Three failures, three in GCC, Bahrain preparing to apply VAT

Bahraini parliament approves VAT bill

Clarifications on VAT need to be clarified

___________

The UAE currently applies a 5% VAT to diversify its activities and create new sources of revenue as part of its plan to reduce its dependence on oil revenues. The International Monetary Fund estimates that the introduction of VAT in the Persian Gulf region could generate between 1.5 and 3% of non-oil GDP new revenue.

The federal authority said that claims for 2018 could be made in April and March for the following years.

The minimum amount of each VAT refund request presented by visitors on a business visit is 2,000 dirhams. It may be one or more purchases and the applicants must keep the original invoices in order to recover the VAT.

Khalid Al Bustani, managing director of the FTA, said the repayments would help support several economic sectors, including tourism, trade, exhibitions and conferences.