- UAE businesses receive clarity on VAT invoices for imports from the Federal Tax Authority (FTA).
- VAT-registered businesses importing services from outside UAE are considered to make a taxable supply to themselves if the place of supply is in the UAE.
- Businesses must account for VAT on imported services and report it in Box 3 of the VAT return.
- UAE businesses are not required to issue a tax invoice to themselves if they retain the overseas supplier’s invoice.
- If no invoice is issued by the supplier, businesses can retain documents showing supplier and recipient details, service description, and payment terms.
- Businesses can recover input VAT credit under the reverse charge mechanism even without issuing a tax invoice to themselves.
- The clarification applies only to the import of services, not goods.
Source: gulfnews.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.
