.png)
.png)
The Federal Tax Authority (FTA) has released the VAT Guide on the Profit Margin Scheme (VATGPM1), effective January 2026. This marks the first comprehensive, standalone resource on the topic. The Guide consolidates the VAT Law, Executive Regulations, and previous public clarifications into a single reference, providing clear direction on when the Scheme may be applied, how “Eligible Goods” and “Eligible Transactions” should be interpreted, and the correct methodology for calculating the profit margin and VAT.
In addition to offering detailed illustrations covering second‑hand goods, antiques, collectors’ items, and Article 53 Goods, the Guide also formalizes the requirements for invoicing, record keeping, and VAT return reporting. This enhanced clarity is intended to support businesses in meeting their compliance obligations and minimize the risk of incorrect application or VAT cascading.
If you or your business require support in understanding or implementing the new Profit Margin Scheme guidance, our VAT specialists are ready to assist.
DOWNLOAD
In addition to offering detailed illustrations covering second‑hand goods, antiques, collectors’ items, and Article 53 Goods, the Guide also formalizes the requirements for invoicing, record keeping, and VAT return reporting. This enhanced clarity is intended to support businesses in meeting their compliance obligations and minimize the risk of incorrect application or VAT cascading.
If you or your business require support in understanding or implementing the new Profit Margin Scheme guidance, our VAT specialists are ready to assist.
DOWNLOAD