Q. What is VAT?
VAT, or Value Added Tax, is basically an indirect tax imposed by the UAE government on businesses and individuals to be paid on the time or purchase of products or services.
Q. From when it will be in effect?
The VAT will be in effect from January 1, 2018 all across the UAE and is set on a 5% standard rate of the total price of the service/product.
Q. What will be the expected price increase?
Currently, the VAT is applicable on selected services/product at the rate of 5%. We’ll update the exact change in price on our services shortly.
Q. Is VAT compulsory?
VAT is applicable to almost all business concerns and the exceptions could only be made by Federal Tax Authority (FTA) or any relevant official body. You may refer to https://www.tax.gov.ae/index.aspx for more information.
Q. How will I be charge after VAT implementation?
The VAT is applicable on our services/products from January 1, 2018. According to regulated laws by FTA the VAT will have an effect of 5% on total price of the service/product consumed i.e. AED 100/- will be increased to AED 105/- after inclusion of VAT.
Q. Do I have to pay for VAT it separately?
The VAT adjustment is already included in the offered price from January 1, 2018 on all our services/ products. You do not have to pay it separately as it is already included into our prices and will be in effect from January 1, 2018.
Q. Do I need to share my TRN if I’m a registered business?
Yes, if you’re a registered business then you’re requested to provide your TRN number. The provision of your TRN number will help us in generating your invoices with the inclusion of your TRN number underneath the business name. Please not that you’ll be required to provide your TRN number when claiming VAT return.
Q. How corporate clients can provide TRN to Inter Serve
Business customers that wish to benefit from VAT returns are requested to provide their Tax Registration Number to Inter Serve along with proof of registration before December 31st 2017 to be included in our system. You may contact our key account managers on contact numbers listed on the website to complete the TRN entry procedure.
Q. Is it possible to generate cash receipts without VAT invoice?
All suppliers, vendors and business associates of Inter Serve that are required to register a VAT number must provide a VAT invoice in order to complete transaction cycle. The VAT invoice has a specific format that is required to be followed by every VAT registered organization as set mandatory by FTA.
Q. Are there any other rules regarding VAT?
Once the VAT is completely in effect after January 1, 2018, more information will be shared in light of rules and regulations on different scenarios of charge under VAT application.
Scenarios to understand VAT charges:
- The charge of VAT still applies in case of the supply of goods for which the payment has already been received before the introduction of VAT in the region.
- In case of contractual supply, the terms should be revised if they miss the clause of VAT implementation between two business concerns.
Q. I need more information on this, where to go?
In order to get more information on this subject, you may visit the official website of Federal Tax Authority.
Q. What is Inter Serve TRN number?
inter serve's Tax Registration Number (TRN) is 100369980600003, you may also verify the official registration certificate here (VAT Registration Certificate)