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UAE pre-VAT contracts

  • Mar 12, 2018 | Richard Asquith

UAE pre-VAT contracts

The United Arab Emirates’ Federal Tax Authority has issued guidance on 3 March on the VAT liabilities for parties in contracts spanning the 1 January 2018 introduction of VAT.

Where a contract does not make clear which party will be liable for VAT, and quotes only a VAT exclusive price, then it automatically falls to the customer.

An exception is where the contract does not refer to VAT and the customer is VAT registered. In this case, amount due is exclusive of VAT.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.