The VAT treatment of the financial services sector in the UAE is a complex process as a variety of transactions are involved in the industry. The complexity increases as the businesses in the industry need to understand how the VAT treatment applies to each type of transaction. The FTA considers the VAT on financial services as standard-rated if the service provider charges an explicit fee, discounts, commission or rebate on the services. The VAT incurred on the costs on the standard rated supply can be recovered in full.
Source: jcauaeaudit.com
