The Profit Margin Scheme offers a clear opportunity to reduce VAT liability for eligible businesses. However, it comes with strict documentation and compliance requirements.
With the 2026 guidance from the Federal Tax Authority, expectations are now clearer—leaving little room for error. Businesses should review their processes and ensure proper implementation to avoid penalties and reassessments.
In summary, the Reverse Charge Mechanism for VAT on metal scrap trading represents a significant regulatory change aimed at improving tax compliance and reducing fraud risks in the UAE’s metal scrap sector.
On Jan 14th of 2025, Federal Tax Authority (FTA) have issued VAT public clarification (VATP039) on VAT implication on Crypto Currency Mining. As we all witnessing rise of popularity of crypto currency, FTA have given the clarification on the VAT treatment on Crypto currency mining.
These updates also underscore the UAE’s commitment to fostering a robust, transparent, and future-ready tax environment that supports innovation while ensuring fiscal integrity.
Corporate tax planning is the arrangement of the financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial