The VAT update is applicable for
- New car dealers
- Used car dealers
- Servicing and parts’ suppliers
Supplies produced by companies in the automotive sector are normally subject to VAT, including
- Sales of new and used cars
- Sales of car parts
- Service centers’ services, warranties, and related insurance services
Public transport services are however, zero-rated for VAT purposes.
Companies in the automotive sector in the UAE are required to register for VAT. Businesses may also voluntarily register for VAT if the value of their taxable supplies and imports or taxable expenses incurred in the last 12 months exceeded, or is anticipated to exceed in the next 30 days, the voluntary registration threshold of AED 187,500.
Tax invoices are mandatory for all standard-rated supplies. Simplified tax invoices may be generated where the supply is given to an unregistered company/person or the supply is made to a registered firm is AED 10,000 or less.
Some entertainment services,purchased, leased or rented motor vehicles that are available for personal use are not allowed for fully recovery of input tax.
You can refer to the guide attached here for detailed information with respect to the same [Automotive Sector – EN – 29 06 2021]
Why choose AGX auditors?
AGX auditors are the team of professional accounting and auditing service providers in DUBAI,UAE. We are registered Auditors under the Ministry of Economy UAE , Dubai delivering dedicated Audit, Accounting, Tax services, Financial Advisory and Business Advisory Services complying regulatory requirements.
Our services are available to all the Emirates in UAE. AGX is one of the accredited auditors for DIFC,DMCC,DAFZA ,JAFZA and all other Free Zones in Dubai and UAE.