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

• The UAE Federal Tax Authority issued VAT Guide VATGPM1 on 15 January 2026, detailing the Profit Margin Scheme under UAE VAT Law.
• The Scheme allows VAT to be calculated on the profit margin (difference between purchase and selling price) for certain eligible goods, rather than on the full sale price.
• It applies to second-hand goods, antiques over 50 years old, and collectors’ items, acquired from non-registrants or suppliers using the Scheme, or where input tax recovery is blocked.
• Application is optional but requires notification to the FTA and meeting specific documentary and eligibility conditions.
• The Guide aims to prevent VAT cascading, clarify compliance requirements, and provide practical examples for resellers.

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.

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