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This Public Clarification discusses the VAT principles for differentiating between a Disbursement and Reimbursement and their VAT treatments respectively.

Reimbursement Expenses falls within the scope of VAT while the other is out of scope.

The key elements for considering payments as disbursements:

1. The payments should be made as an agent of the principal.

2. The invoice should be in the name of principal.

3. The payment should be separately shown on the invoice

4. There should be authorisation from principal for the payment.

5. There should not be any markup on the transaction.

The UAE businesses are facing quiet a number of challenges while implementing VAT in their business stream to ensure that they are VAT compliant. As VAT is a newly adopted concept in the region, it requires qualified and experienced Tax professionals’ advise to support the businesses especially, while complying in the initial stages of this transition. Alya Al Marzooqi Auditing  provides experienced chartered accountants as their tax advisers. Tax Experts have relevant industry specific experience in taxation complying with international standards.

Why choose Alya Al Marzooqi Auditors for VAT Consultation Services?

  1. Alya Al Marzooqi Auditing provides qualified Chartered Accountants with exceptional professional experience in diverse industries from different countries with international tax experience.
  2. We assist the clients efficiently to manage their VAT transactions by complying with VAT laws and advising on transactions. The TAX Experts ensure that the businesses comply with the rules and regulations so that there are no overpayments made and Input Credit is taken correctly on time. Our TAX Advisory Services is designed to comply with your business needs to cater you our best advisory services in the UAE.
  3. We have our branch offices located outside UAE in India. The TAX experts in all our offices are enriched with international experience in taxation in various industries.

We provide VAT (Value added Tax) Advisory Services in Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, Ras Al Khaimah & Umm Al Quwain providing clients with a wide range of TAX Services in UAE with accordance to the client’s business needs. VAT Experts at Alya Al Marzooqi Auditing are committed to provide the best VAT Advisory Service in the UAE to the clients in compliance with the rules and regulations of VAT in the UAE having their international experience in Taxation. The Tax Team at Alya Al Marzooqi Auditing are professionally equipped with relevant industry experience from different ends .

Read More : https://www.tax.gov.ae/-/media/Files/FTA/links/Public-Clarification/VATP013—Disbursements-and-Reimbursements.pdf

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