UAE FTA Issues VAT Guide Clarifying Profit Margin Scheme for Second-Hand and Eligible Goods

• The UAE Federal Tax Authority released a VAT Guide clarifying the Profit Margin Scheme for VAT purposes.
• The Scheme allows VAT to be calculated on the profit margin (difference between purchase and selling price) for eligible goods, rather than the full sale price.
• It applies to second-hand goods, antiques, and collectors’ items acquired from non-registrants or those applying the Scheme, and where input tax recovery is blocked.
• Specific conditions and documentation are required, and application of the Scheme is optional but must be notified to the FTA.
• The guidance aims to prevent VAT cascading, support accurate VAT calculation for resellers, and maintain compliance safeguards.

Source: mailchi.mp

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.

---

---