Export of Cars
As per Recent FTA guideline, Export of Cars of multiple sales of cars resulting in single export, only the final supply can be 0%.
Practically, resident of uae purchase cars and export to their overseas customers and revert to the dealers with export papers that cars exit hence refund the vat and make supplies as 0% becuase cars have been exported by them.
In this case, what dealer should do becuase he sold to them locally & risk and reward transferred and what customer should for refund either contact to FTA eventhough he is un registered?
Replies
The dealer cannot Zero rate their sale to the UAE resident even if the UAE resident furnishes proof of export as this does not fall under Direct or Indirect export for the dealer. There are 2 supplies in this, first being sale of card be dealer to resident and second being sale of car (export) by the resident to its overseas customer. In this scenario the dealer cannot zero rate their sale citing final export of goods and if they do so, it would be incorrect. If the resident exporting the car is VAT registered then input VAT on dealer purchase can be claimed in the return. And the resident is unregistered the input VAT merely becomes their cost.
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