Premium is not considered as separate supply but is a part of Consideration of the goods and subjected to the same VAT Treatment
 

Premium is not considered as separate supply but is a part of Consideration of the goods and subjected to the same VAT Treatment

May 5, 2023by admin0
Premium is not considered as separate supply but is a part of Consideration of the goods and subjected to the same VAT Treatment

We recently assisted one of our large clients in Gold Bullion Trade to obtain a clarification on VAT treatment from FTA. In the private clarification issued, FTA clarified that premium is considered as part of the consideration for the supply of the goods and shall be subject to same VAT treatment.

A taxable person is required to impose VAT
5 on all its taxable supplies unless the supplies qualify for zero rating under Article 45(8) of UAE VAT Law Accordingly.

If the taxable person supplies goods which qualify
as precious metals within the Article 36 (2) of the Executive Regulation, the whole consideration for the supply, including the premium will be subjected to zero rate

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REACH USHeadquarters
Onboard the UAE’s one of most trusted advisory firm offering various tailored services to support all upcoming & existing businesses across the UAE.
OUR LOCATIONSWhere to find us?
FAME Advisory: 412, Office Court Building - D79, Oud Metha, Dubai, UAE


TMSL (Collaboration Partner): 501-A, Pinnacle Corporate Park Next to Trade Centre, BKC, Bandra East Mumbai, Maharashtra, India

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