How to apply exchange rate on supply of services and goods for the purpose of VAT in UAE.

by | Apr 18, 2020 | English Topics, Uncategorized

Businesses are required to use exact exchange rate published by the UAE Central Bank on daily basis using the same number of decimal places and businesses are not allowed to round off the decimal places while issuing the tax invoices.

Exchange rate on import of services

Taxable businesses importing services from foreign suppliers are required to apply UAE Central Bank exchange rate on the date of supply in order to calculate the VAT under reverse charge mechanism.

Exchange rate on import of goods

Where goods are imported into the UAE, the VAT due import shall automatically be calculated based on the import declaration submitted via the relevant Customs Department and the businesses are not required to convert the value of the import based on the UAE Central Bank rate.

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