Dear Mr. Manu, Great Video... it helped a lot. We have a friend his company deals in Real Estate brokerage. Means, they speak to the owners of the building and tell them, we will bring you clients who will take your apartments on rent for residential purpose. ( Here I see it is clear that on Commercial building there is 5% VAT, so that is clear). The confusion is in Residential. So in above case, my friends company brings the client to the owner of the building and charges X% of the rent to the client ( and does not charge any thing to the Owner, so from the client, will my friend company charge and file 5% VAT for doing this brokerage of the deal? Please advise urgently, as they are doing registration now as their company is new and they are not sure what to do.
Sir, received trn for real estate rent n date mentioned june month q. But we mandatory on may month how to pay may month rent vat . Againt what we reclaim the vat??
Hi sir, for CAS in which cell in VAT return 201 we input the 25k payment from year 4 for residential activity. In sales column or we deduct from inwards supplies?
Hi @Accounts Ecostar, as per the UAE VAT Law, Sale or Lease of commercial property is always Standard rated. Zero rating or Exemption applies only for residential properties.
You are real estate owner, one of your owned shop has a lease contract starting on 01/04/2020 and ending on 31/03/2021. With a value of 1,20,000 dirhams to be paid through 4 post - date checks of equal value, and the First check of which was collected on 01/04/2020, and the other there checks are due every 3 months The Requirement : Prepare the journal entries for this case until the end of the fiscal year, nothing that the fiscal year ends on 31/12/2020 and the owner of the shop is tax registered Plz hepl me for journal entries
For the residential buildings if the first supply within 3 years was for only 50% of the building , will I claim total input vat paid on construction or 50% also ?
Dear Mr. Manu Nair! could you please explain what are the vat registration and vat return filing obligations of an owner of a residential building (mixed use bldg.) that has 5 shops and 2 offices at the ground floor? let me further explain the scenario... the building is given to a real estate management company for 3 years starting 01-06-2016 for a lumpsum contract amount of AED 3,000,000/- ( lumpsum for all the residential units plus 5 shops and 2 offices). The real estate management company is charging VAT at the time of issuing the rental contracts for Shops and offices and paying the VAT collected to FTA. Anything to do at the Owner's end?? Regards!
Dear Sir, Thankyou for your comment. To get a clear scenario we request you give your mobile number or please call @ 0505282838 to reach our Tax Agent.
One more question, one customer heavy purchases in last quarter so there was Dhs.8000 approx . They filed as VAT return and this figure was coming as -8000 ( i.e in negative), so when they file next return, and suppose the VAT payable due is Dhs.10,000, so after they submit return on website, the site will do auto adjustment and will ask customer to just Pay Dhs. 2000 ( as net final payable value). Please advise.
If the owner of a real state building use one of the shop as office in order to carry on management activity related to same real state building so what will be the treatment of that shop.can we consider it as deemed supply and owner will be responsible to generate tax invoice and will pay standard tax rate ? please explain about it
Hi Sir, An invoice for one year has been raised against the Tenancy contract and given to the tenant. 1. The contract is terminated in between then can we raise any credit note and refund the excess vat amount collected (As the Excess amount of rent we are refunding) 2. The tenant needs to change the Tenant name in the contract and all the conditions rent and period will be same. In this case, can we make the full credit note for the old contract and make new invoices in the new contract or do we need to collect extra vat from the tenant for the new contract made only for the change in name. 3. Contract and Invoice have been made but rent and Vat amount not collected and bad debt, Any chance to get a refund in the amount we paid as Vat to FTA. Kindly give an Advice for the above 3 scenarios. Thanks,..
Sir ... i have a doubt regarding insurance company debit note. We bought insurance from an agent company ,and they bought plan from oman insurance .... Oman insurance give the tax invoice against us and the agent company gave us debit note ...how we have to treat this transaction in accounts
The employees salaries for the month of the month of march 2020 is Dhs 1,20,000 and they were paid on 15/04/2020 The Requirement : Prepare the journal entries for this case in addition prepare the journal entries for the accrual of vacation allowance provision and the end of service gratuity propvision Plz help me for journal entries
In my view, development of a property is a service industry, the place of supply is the place where service is being delivered. so if the supply is a UAE based supply then developer will charge VAT at standard rate.what are the expenses that are related to development work will be claimable.
the contractor can claim input VAT on construction services that he is rendering.the owner of hotal and apartments can also claim input VAT as he is issuing the standard rate invoice and collecting output tax
On 01/07/2020, the company headquarters insurance policy was renewed for dhs 14,000 covering a calender years and payment was made on 10/08/2020 through PDC due on 20/08/2020 Prepare the journal entries for this case entries for the fiscal years, nothing that the fiscal year end 31/12/2020 plus the insurance company is registered tax Plz help me for entries
Dear Sir, Could you provide Journal entry for Prepaid Rent or any prepayment with Vat ? Eg. Rent paying with Vat for one year, how it will be treat Sir ? Prepaid Rent Dr. VAT Dr. To Landlorder Cr. I seems this is not correct entry, Kindly Advice.Thank you.
It has to passed by Monthly Eg: When prepayment Prepaid rent Dr To Landlord When expensin Rent Rent dr Input vat dr To Prepaid rent Adjust recoverable input tax accordingly
Muhammed sanood, you will only Dr input when you will record the expense? I think it's wrong? You can claim the vat once you pay it, the time you received the billing Dr. Prepaid ex Dr. Input vat Cr. Cash/ AP
Dear Sir Mr Manu Nair Can we recover input vat on our office rent website renewals maintenance health insurance cards p o box gifts perfumes foods items etc given to buyers clients petrol car service car wash tyres change batteries advertising costs marketing costs which we are paying upfront for 1 year the 5% vat on the above expenses for running the real estate brokerage company thanks best regards Altaff Hadi Specialists Professionals Real Estate Brokers
