- New VAT rules in UAE redefine “composite supply” vs “multiple supplies,” affecting how bundled products/services are taxed.
- If contracts or invoices show separate prices for components, the supply cannot be treated as a single composite supply.
- The original supplier may be responsible for VAT on all components, even if some are subcontracted.
- Businesses offering bundled services must review and possibly restructure contracts and pricing to avoid unexpected VAT liabilities.
- Immediate review of existing bundled offers is advised to ensure compliance and prevent tax surprises.
Source: acme-group.me
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.
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