Sir, a Designated Zone Company sells goods to its customer in Main Land under DDP (Duty Delivered Paid) terms, The Goods is Cleared under Customer's Importer code and appearing in Box 6 "Goods Imported". Hence Designated zone company is not charging VAT to main land customer and main land customer is accounts for RCM. is this correct ? please advise.
This is excellent, thank you for a brilliant interpretation. Regarding VAT treatment on retention amount in a construction contract. Please correct if I am wrong on the following. •Retention money which is retained from progressive invoices is the amount which starts from 01-01-2018 until completion of the contract: - is not taxable at this point •Retention money is due and will be released: - is taxable at this point •Retention release for works - pre VAT period: - is not applicable to account VAT. •Retention release for works - post VAT period: - is taxable at the point of invoice or payment which one happens earlier. Thank you.
Dear Sir, please stay tuned. We shall be uploading a video soon on Retention. We provide optimized VAT Services, for any assistance please contact our office 04 250 0290.
Thanks sir for very helpful information. I have a question that,a person having bachelor degree can he/she provide services to different companies for vat registration or filing? Or is he/she required a license or approval from UAE Government.
Very good information helpful and great advice excellent explanation valuable video thanks you God bless you brother jazak Allah hu khair brother I am from India 🇮🇳
If one Designated zone (A)Selling Raw material(ie Cigarttee paper for producing cigratees) to another designated zone (B).Designated zone (A) have to charge VAT?
If a designated zone company purchase petroleum products (which are exempted ) from main land. What is the treatment for the same for sales and purchase. ?
Dear Sir, our company located in designated zone bills to mainland company for container purchase and ocean freight and other services in Karachi, Pakistan. Container departed from Ajman, and going to Karachi. Should we add VAT 5%? or will it be considered as out of scope? or will it be 0- rated as international freight forwarding? How should we declare it in VAT returns? Thank you.
Thank you for informative video. Just to clarify, as a DZ company, how do we report a sale transaction from DZ to UAE mainland in the VAT 201 Form? I understand from the point of view of the buyer, there will be 5% VAT but as seller, will it be a part of my VAT reporting or not? If yes, under which column?
Could you please clarify, as a Designated Zonecompany, how do we report a sale transaction from Designated Zone to UAE mainland in the VAT 201 Form? I understand from the point of view of the buyer, there will be 5% VAT but as seller, will it be a part of my VAT reporting or not? If yes, under which column?
@@santoshbehera2558 in case of Sale of Goods, the designated zone company has no liability to disclose this sale to mainland in VAT 201 as it is RCM for the recipient.
sir, If sales from Designated zone to UAE Main land company, RCM is applied? Does this purchase information automatically appear in FTA site under row no 6 under the heading GOODS IMPORTED INTO THE UAE
in my knowledge as the mainland company clears the goods to mainland there name will appear in the customs records and this will appear in FTA site automatically. RCM is applicable to them.
So my question is I will have to pay VAT only when I am selling within UAE if I sell it outside UAE I dont have have to pay VAT. and secondly when I import from Japan to UAE. I dont have to pay VAT?
Your right mibin no vat will be charged by designated zone company if he sells goods in the mainland. You need to records the goods under reverse charge mechanism as it will be treated as import.
Can you please explain the VAT Applicability of a Company in Main Land and another in DFZ ( Case : If the company in main land got an order from a company in DFZ and the mainland company purchase it from Outside GCC and directly supplied to the company is DFZ .whether the company in Main land to charge VAT to the DFZ . Thanks in advance for the advise
Dear Saju, if you are purchasing from outside UAE and the goods is not coming under reverse charge mechanism, then it will be outside the scope of VAT. But if these supplies is coming under reverse charge mechanism, then you have to charge VAT.
Great video! but still, need to the clear the sales transaction between to DZF to a mainland. I guess the DFZ company will issue an invoice without VATand mainland company treat as import and record under RCM. Please confirm if is it correct?
Sir, we (UAE Company) are getting purchase bill from FZ company with TAX. & same amount also shown in FTA site, column number 6 goods imported into UAE. how we adjust vat while filling vat return as we already paid vat to the supplier at the time of import to local from FZ ?
FZ company should not charge VAT on the bills issued to Mainland. It can also be possible that FZ company does not fall into the category specified by FTA Cabinet. Your company can take the input credit of VAT charged by supplier(as you are paying the same). Now, the FTA site will also be showing the import as the FZ co. must have imported the goods in your Import code. You can reverse that amount in the FTA site itself Cloumn No 10
In my knowledge FZ company should not charge tax . As mainland company clears goods to mainland from FZ there name will appear in the FTA and Customs records. However you can take the tax credit for the vat charged by FZ co. as it collected by the FZ co. Also for the import appearing in the FTA site you can claim as per RCM.
sir, our company situated in a designated zone and we purchase material from the same designated zone.First, I need to know that vat applicable in this case or not, if not how it would be showing in the vat return filing.
Sir, if Desingated zone (DZ) company sold goods to mainland company then it must be without vat and reverse charge is applicable. Please clear this confusion as from this video you said that they (DZ) will charge VAT. Waiting for you reply. Thanks
Sir, when sales from DZ to Mainland company, Does it automatically appear in ROW No 6 under the heading GOODS IMPORTED INTO THE UAE ( RCM ) or purchaser have to account for VAT it self.
Hi thank you for sharing such Informative videos. Could you please clarify my below doubt, If a company in a designated zone pays for the purchase from a company which is outside the UAE, and then before the goods reaches UAE it issues a sales invoice and sells the goods to another company which is in the UAE Mainland. The customer ( mainland company ) pays the customs and clears the goods by themself. In this case, does the designated Zone company has to issue 5% tax invoice or no.
In my knowledge as the mainland company clears the goods to mainland there name will appear in the customs records and RCM is applicable to them. The Designated zone company need not collect tax.
