Here is an oversimplified update with respect to our workflow from 1st January 2018 once VAT is implemented in UAE. Right now this is all the update we have, but the workflow will keep changing depending on the customer and legal requirements.
Our TRN Number is 100016054700003
1. If you are our Local UAE based Customer
- We will charge 5% VAT on all the products and Services.
- VAT will be shown itemized on each invoice for your convenience and for your claim ( in case you are reselling it and claiming it as input vat).
- Your VAT number will be shown on our invoice if you have already updated it with us.
To Summarize, We charge 5% flat on all products and services. If you resell the goods or use them for your business purpose, you can claim this amount as your input vat. It's important to collect an invoice from us with your TRN/VAT number on it.
2. If you are our Export Customer based out of UAE.
- We will charge 0% VAT if we ship using our forwarder.
- If you nominate your forwarder, we will take a 5% Security cheque from you or your forwarder which will be returned as soon your forwarder returns to us the export proof.
- Must be within 60 days of invoicing.
- If you buy and carry goods yourself from Dubai, we will charge you 5% VAT on the invoice, and issue you a TAX Free Tag , which entitles you to a partial VAT refund at the airport. ( See Section 4 below 'if you are a tourist')
The rationale for Export is - We charge 0% vat, and collect the documents proving that the goods left UAE. If we don't have such documents within 60 days of shipment, we are liable to pay VAT and fines.
The Documents we Need from your forwarder to proved that it was Exported are
1. Customs Exit/Entry Certificate
2. Export Declaration
3. Export B/L, AWB.
3. If you are our supplier
We will ask you to update our records with our VAT/TRN number. Each invoice billed to us must show our TRN number. ( 100016054700003). Without this TRN number, we won't accept any invoice and your payment may be delayed.
4. If you are a Tourist ( Carrying goods out of UAE yourself)
There is now a scheme of refunding the VAT amount for the goods that Eligible Tourists carry out of the country within 90 days of purchase.
- Eligible Tourist: UAE Residents and Crew Members of Flights are not eligible. GCC Nationals are Eligible.
- Minimum Purchase of AED 250
- Digital Process, but you need to keep your Purchase receipt with a Tax-free tag for validation at exiting the country
- Goods Must be Carried by you at the time of leaving UAE, there may be an inspection.
- you must have bought the goods from a registered retailer, and obtain a purchase invoice, with Tax-free tag QR Code.
1. You make an eligible purchase, telling the shop assistant that you want the tax free purchase. Shop assistant asks for your Passport or GCC National card, and prepares an application for you with an app. You leave the shop with a tax-free tag attached to your invoice.
2. Within 90 days you exit the country, at the time of exit you validate the invoice/receipt at the validation point and get 85% of the total VAT amount ( -AED 4.80 per tag). You can get it as Cash , upto AED 10K per tourish. More than this amount will be paid only to Credit/Debit cards.