Zero rated services
We are using fiscal representative (Fiscal representation is a process where an individual or company represents a business in a specific year and in specific transactions in france) services in france as required by france VAT regulations. we are getting invoice from dubai entity ( branch of france company ) including VAT for fiscal representation services. my opinion is VAT should not be charged by dubai company as we are getting services in france hence the place of supply of services is outside UAE. please let us know what should be the treatment of this transaction???
Replies
The place of supply is determined by Art 29 and 30 of Decree Law. So if the nature of services being provided by Dubai Company does not fall under them, then the default POS rule applies ie location of the supplier, which in this case would be UAE itself. Following this, the Dubai entity can check if their services can be zero rated under Article 31 of the Executive Regulations and if it doesn't (Eg: if the customer is a UAE entity), then 5% VAT will have to be charged by them.
0 LikeReply :
Login to reply. click here
