New VAT Guidance Note for the UAE Automotive Sector
04 July 2021
The Federal Tax Authority (FTA) has issued a VAT guide for the automotive sector. It is one of the most detailed guidance notes issued by the FTA to date and is essential reading for any business connected with the UAE car industry.
The guide includes sections on the sale of both new and used vehicles, the import and export of cars, car leasing, hire-purchase, and warranties. Helpful examples are used to illustrate many of the important points.
The section on the Profit Margin Scheme will be particularly helpful to businesses dealing in used cars. This scheme has many benefits for businesses that can use it. However, there are strict conditions that must be followed regarding the type of vehicle that is eligible for the scheme, the records that must be kept, and the invoicing requirements. The guide covers all these issues in depth.
The guide can be found here - FTA website.
For further information, please speak to one of our VAT specialists.