VAT re companies with JAFZA
Sorry folks to bang on about this...but does anyone know for sure if companies within JAFZA do not have to be VAT compliant? There are no frigging online clear guidelines on this and i am now getting hounded by my UK head office to get this frigging sorted.
I have been informed by several accountancy firms (who i approached) who all said because we are a company within JAFZA we are not VAT complaint, but it would help to get some 'proof' to back this up. Any help would be greatly appreciated. :unsure: |
Re: VAT re companies with JAFZA
Don't know for sure, but I thought the whole purpose of the Free Zone was so that you can do business in the region, but not with "mainland" UAE - not that anyone follows that rule of course.
For example, if you're importing goods to Jebel Ali Port, then "export" them to a customer in Satwa, you pay customs duty. If you import to Jebel Ali, then export to say Bahrain without leaving the free zone, then no VAT is applicable. So either way, you're not paying VAT. That said, the invoices you will receive from most UAE suppliers will have VAT on them, so you'll probably want to register for VAT so that you can claim back the input tax. Any supply of services outwith the free zone, you'd be able to add VAT to your invoice with no real disadvantage. I think. Still waiting for someone to arrange a seminar for our company. |
Re: VAT re companies with JAFZA
Originally Posted by Gavtek
(Post 12366182)
Don't know for sure, but I thought the whole purpose of the Free Zone was so that you can do business in the region, but not with "mainland" UAE - not that anyone follows that rule of course.
For example, if you're importing goods to Jebel Ali Port, then "export" them to a customer in Satwa, you pay customs duty. If you import to Jebel Ali, then export to say Bahrain without leaving the free zone, then no VAT is applicable. So either way, you're not paying VAT. That said, the invoices you will receive from most UAE suppliers will have VAT on them, so you'll probably want to register for VAT so that you can claim back the input tax. Any supply of services outwith the free zone, you'd be able to add VAT to your invoice with no real disadvantage. I think. Still waiting for someone to arrange a seminar for our company. |
Re: VAT re companies with JAFZA
Can you not use the accountancy firms emails/proposals etc as evidence for not complying with the VAT regulations ?
(I wouldn't put much weight on what any of the 'big 4' say - even this morning I had an email from them which was obviously wrong i.e. quoting some regulations and missing the figure by 450%!!!) |
Re: VAT re companies with JAFZA
Originally Posted by UKCityGent
(Post 12366196)
Can you not use the accountancy firms emails/proposals etc as evidence for not complying with the VAT regulations ?
(I wouldn't put much weight on what any of the 'big 4' say - even this morning I had an email from them which was obviously wrong i.e. quoting some regulations and missing the figure by 450%!!!) |
Re: VAT re companies with JAFZA
does anyone have the online registration link? I can't even find this anywhere on the net! so bl00dy frustrating.
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Re: VAT re companies with JAFZA
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Re: VAT re companies with JAFZA
tax.gov.ae
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Re: VAT re companies with JAFZA
Originally Posted by UKCityGent
(Post 12366218)
Originally Posted by Irishbeekeeper
(Post 12366644)
tax.gov.ae
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Re: VAT re companies with JAFZA
Why do you not just visit the JAFZA offices and enquire, surely that should be your first port of call???
Failing that go to the MoF and ask there....if nothing else you can get the whole afternoon off trying111 |
Re: VAT re companies with JAFZA
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Re: VAT re companies with JAFZA
Originally Posted by Dubaiexile
(Post 12366687)
Why do you not just visit the JAFZA offices and enquire, surely that should be your first port of call???
Failing that go to the MoF and ask there....if nothing else you can get the whole afternoon off trying111 And to be honest the last place i want to go too is the MoF...i'll be passed from pillar to post. |
Re: VAT re companies with JAFZA
Originally Posted by Millhouse
(Post 12366689)
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Re: VAT re companies with JAFZA
According to this article, the decision on how the Free Zones will be treated has been deferred to the Executive Regulations which have not been released yet:
https://www.thenational.ae/business/...w-law-1.623648 They are probably still figuring out how VAT will apply in the free zones where the boundaries are more blurred like JLT/DMCC. |
Re: VAT re companies with JAFZA
Originally Posted by Gavtek
(Post 12366722)
According to this article, the decision on how the Free Zones will be treated has been deferred to the Executive Regulations which have not been released yet:
https://www.thenational.ae/business/...w-law-1.623648 They are probably still figuring out how VAT will apply in the free zones where the boundaries are more blurred like JLT/DMCC. |
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