Page 14 - ICAI UAE TAX UPDATE_October 2024

Article (33) – Zero Article 33 (1) It has been clarified that the
rating international transport of goods from a
transpor tation d. Transporting Goods from a place in the State to another place in the UAE to another
services for place in the State if the Services are supplied by the same place in UAE, as part of
passengers and goods supplier as part of the supply of Services of transporting international transportation
these Goods either from a place in the State to a place of goods, should be supplied
outside the State or from a place outside the State to a place by the same suppliers in
in the State. order to qualify for zero-
rating.

Effective from November 15,
2024

Article (42) – Tax Article 42 (3) New services have been
Treatment of Financial added to the scope of
Services The following financial services shall be exempted: financial services where
such services should be
d. Fund management services described in paragraph (j) of exempted from VAT
Clause 2 of Article 42
Effective from January 01,
e. Services specified in paragraphs (k) and (l) of Clause 2 of 2018
Article 42, including services supplied on or after 1 January
2018
j. The management of investment funds, which means
“services provided by the fund manager independently for
a consideration, to funds licensed by a competent authority
in the State, including but not limited to, management of
the fund’s operations, management of investments for or
on behalf of the fund, monitoring and improvement of the
fund’s performance”.
k. The transfer of ownership of Virtual Assets, including
virtual currencies.
l. The conversion of Virtual Assets.
m. Keeping and managing Virtual Assets and enabling
control thereof.
n. Agreeing to do or arranging any of the activities specified
in paragraphs (a) to (m) of this Clause, other than advising
thereon.
Article 46 – Tax on Clause 1 (b) Tax treatment of composite
Supplies of More Than supplies follows the main
One Component If a single composite supply does not contain a principal component or overall nature
component, the Tax treatment shall, generally, be applied of the supply.
based on the nature of the supply as a whole.
Effective from November 15,
2024
Article (52) – Input tax 1. Supplies referred to in paragraph (c) of Clause 1 of Article For the purpose of input
recovery in respect of 54 of the Decree-Law are the supplies of Financial Services, VAT recovery on supplies of
exempt supplies where the place of supply of these Services is treated as financial services provided
outside the State and the Recipient of Services is outside outside UAE, the conditions
the State at the time when the Services are performed. for a person to be considered
2. For the purpose of Clause 1 of this Article a Person is as outside the UAE even
“outside the State” even if they are present in the State, where that person is present
provided it is only a short-term presence in the State of in the UAE are updated
less than a month, and that his presence is not effectively where the following two
14 www.icaidubai.org

UAE TAX UPDATE NEWSLETTER ISSUE 07 - October 2024