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.

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