UAE VAT Public Clarification (VATP001) – Compensation Type Payments

Do you Know there are some payments which are “Out of the Scope of VAT”?

What are those?
– Contractual payments to compensate loss
If the compensation payment is paid in accordance with the agreement or contract, this will be considered as “Compensation” which is Out of the Scope of VAT, until and unless, it is cessation of right.

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Source Compliance 360 consultants

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