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FTA New Guide on the Automotive Sector

FTA has released a new guide on the VAT applicability in the Automotive sector VATGAM1. It is a long awaited guide which comprehensively covers the various supplies in the Automotive Industry. It covers Car Sale, Hire purchase, Trade-ins, Used/preowned cars supplies, Car Lease, Export/Import of Cars, Warranty, Promotions/Discounts and Auctioneering.

The Key Highlights of the Guide are:

  • Clarity on time of supply for Car Sales
  • Trade ins being two separate supplies for VAT treatment
  • Display prices for cars to be inclusive of VAT
  • Clarity on Profit Margin scheme applicability
  • Time of Supply clarity on Leased Cars
  • Various scenarios for Import and Export of Cars
  • Treatment of Salik reimbursement clarity

Please find enclosed the detailed guide released by FTA for your ready reference.

Download PDF: UAE FTA Update
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