OVERVIEW OF VAT Output VAT Input VAT = VAT payable - - PowerPoint PPT Presentation

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Mar 24, 2024 19 likes •111 views

OVERVIEW OF VAT Output VAT Input VAT = VAT payable OVERVIEW OF VAT 100+5 150+7.5 200+10 7.5 5 = 2.5 10 7.5 = 2.5 5 Tax collected by FTA = 5+2.5+2.5=10 TAXABLE SUPPLIES BASIC RULE : Supplies of goods

SLIDE 1

SLIDE 2

OVERVIEW OF VAT

Output VAT – Input VAT = VAT payable

SLIDE 3

OVERVIEW OF VAT

100+5 150+7.5 200+10 5

7.5 – 5 = 2.5 10 – 7.5 = 2.5

Tax collected by FTA = 5+2.5+2.5=10

SLIDE 4

TAXABLE SUPPLIES

Supplies Taxable Standard rated (5%) Zero rated (0%) Exempt No VAT

BASIC RULE: Supplies of goods and services in the course of business for a consideration are taxable unless exempt by law.

SLIDE 5

Zero rated supplies

SLIDE 6

Exempt supplies

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DESIGNATED ZONES IN FREEZONES

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REVERSE CHARGE MECHANISM

SLIDE 9

UAE accounting firm charges AED 5,000 plus 5% VAT
Accounting firm declares AED 250 as Output tax in return
UAE Business declares AED 250 as Input tax paid to accounting firm

UK accounting firm charges AED 5,000

UK accounting firm is not registered in UAE and does not file return
UAE Business declares AED 250 as Input tax and AED 250 as Output tax in