Michaela Merz


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UAE: VAT Guide on Designated Zones – VAT Guide (VATGDZ1)


In brief

On 29 July 2018, the Federal Tax Authority (“FTA”) published a VAT Guide on Designated Zones – VAT Guide (VATGDZ1).

Guidance is provided on the specific characteristics of a Free Zone and how it can qualify as a Designated Zone for VAT purposes. Additionally, information and examples also detail the practical application of Article 51 of the UAE VAT Executive Regulations in order to help businesses operating in designated zones. Continue reading


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United Arab Emirates: New VAT developments in the GCC and guides being released by the FTA in connection with Article 53


I would like to inform you about the application of Article 53 of the VAT Executive Regulations and sets out guidance on non-recoverable VAT relating to entertainment / hospitality.
The guidance sets out detail and examples which are to be considered to determine whether or not costs incurred are to be seen as for business purposes and therefore recoverable for input tax purposes. In summary, the clarification covers the following key aspects: Entertainment provided to non-employees, Entertainment provided to employees, Definition of entertainment services. Continue reading