UAE property firms must keep financial records…

The Federal Tax Authority on Tuesday issued Executive Regulations for value-added tax (VAT), which stated that real estate firms would have to maintain their books for 15 years.

He noted that any pharmaceutical products and medical equipment supplied even by intermediaries or traders to hospitals will be zero-rated. Cosmetic treatments will be subject to a standard five per cent rate of VAT.

They noted that as per the Executive Regulations, fee-based financial services, which are provided in return for an explicit fee, discount, commission, rebate, etc., would be subject to VAT.

Thomas Vanhee, founding partner, Aurifer Middle East Tax, said that a missing piece of the puzzle is VAT returns. VAT return is an important document for the set up of tax codes to automate reporting. Without knowing where to report certain transactions, businesses cannot finish the set up of their ERP systems.

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