The UAE's Federal Tax Authority (FTA) has clarified that "VAT-free special offers" are misleading and contrary to legislation because goods and services are not actually supplied free of value-added tax (VAT). Numerous retailers are offering "VAT-free special offers" as promotions to entice prospective buyers to purchase goods or services within a promotional period. But instead of "VAT-free special offers", tax experts say that such campaigns should be referred to as "VAT on us". The authority said VAT-registered businesses should not advertise taxable goods or services as free of VAT or sell such goods or services without accounting for five per cent VAT, except where the supply qualifies for zero-rating. It said the seller may, however, make a commercial decision to offer a discount equivalent to the amount of VAT. As a consequence, VAT ...read more...
CountryUnited Arab Emirates