VAT Impact Assessment

Classification of Taxable Supplies 

A supply composed of different components with different VAT rates is challenging to understand. Also, a detailed analysis is needed to understand the VAT implications when a tripartite supply transaction occurs. A precise classification of supplies enables businesses to be clear on recording and accounting transactions.  

FAME Advisory can help you with this understanding. Our VAT consultants understand the various types of taxable supplies in different sectors. Our knowledge and extensive experience help you understand VAT applicability.  

Identification of Expenses on which Input VAT Recovery is Possible 

Generally, businesses in UAE do not understand the concept of input VAT recovery. There are some expenses not conducted in the ordinary course of business or on which FTA has blocked input VAT recovery.  

FAME Advisory helps you classify such expenses to avoid errors and unnecessary refund claims to FTA. We also provide administrative help to separate the goods or services bought before VAT registration to avoid recovering VAT on them. Our understanding of VAT treatment of expenses in the pre-initial public offering and M&A transactions benefits you in such processes.  

VAT Impact on Outsourcing and Cross-Border Transactions 

Businesses making cross-border supplies may find it challenging to understand the VAT applicability because of different VAT rules in other countries. Similar problems arise at the time of outsourcing transactions, where VAT applicability is challenging to gauge.  

FAME experts have experience handling similar indirect taxes in other countries. We help you understand the VAT impact on proposed transactions in outsourcing and cross-border. We ensure accuracy, complete accounts, and proper reporting of such transactions.  

VAT Impact on Group Companies 

It is crucial for VAT group companies to maximize input VAT recovery. They must plan their transactions and operations so that no confusion occurs. Common issues in the case of group VAT occur in accountability, entitlement to refunds, retention of VAT records, quarterly returns, and more.  

FAME works with clients on all these aspects in the case of VAT group companies. We help you with transactions between the entities in the VAT group and with an external entity outside the VAT group. We simplify the VAT administrative procedures and help you offset the VAT payable and refundable.  

Obtaining Clarifications from FTA 

In addition to helping you understand the VAT impact on your business transactions, we also obtain clarifications from the FTA. We prepare the documents to be submitted to the FTA seeking clarifications. These clarification requests relate to uncertain business matters where you need further guidance.