Sign in
Investment services exempt from VAT: The cabinet approved amendments to Value Added Tax (VAT) regulations that will exempt investments through fund managers and the transfer and conversion of virtual assets from the 5% VAT, Wam reports. The amendments came in response to “market needs” and feedback from stakeholders on current policies, and will take effect as of 15 November, according to PwC.
Also exempt: In-kind (i.e. non-monetary) donations up to AED 5 mn between charitable and government organizations over a one-year period will also be exempt.
In context: A number of services are already exempt from VAT, including ins. and reins., the issuance of debt, and financial services where no fee is involved; buying residential properties; supply of bare land; and local passenger transport services. Most education and healthcare services are also exempt.
The Federal Tax Authority can also now deregister taxpayers in specific cases, as the ministry plans to tighten its grip on tax compliance.
