- SWIFT plays a pivotal role in facilitating secure communication between financial institutions globally
- FTA sheds light on VAT implications of SWIFT transactions through Public Clarification VATP036
- Financial institutions can recover input tax on expenses related to taxable supplies incurred through SWIFT communication with non-resident banks
- SWIFT is deemed a taxable service, with VAT obligations for imported services
- Financial institutions can issue tax invoices to themselves for SWIFT transactions
- FTA may accept SWIFT messages as evidence for VAT compliance
- Public Clarification VATP036 provides clarity on VAT compliance for financial institutions engaged in SWIFT transactions
- Adherence to guidelines will be crucial for navigating complexities of VAT obligations while leveraging efficiency of SWIFT communication.
Source: emiratesca.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
