OrbitaxUAE Issues VAT Guidance on Compensation Type Payments, Profit Margin Scheme, and Labor Accommodation
|Approved Changes|Untd A Emirates
The UAE Federal Tax Authority (FTA) has recently issued guidance addressing certain value added tax (VAT) matters. These are summarized as follows:
This guidance clarifies the treatment of compensation-type payments, including that where a payment is not consideration for a supply, no VAT is due. Some of the main points include:
- A contractual payment to compensa…
