1. 6th ICC UAE Trade Finance Conference
VAT Impact on the UAE Banking Industry
20 Nov 2017
This presentation is for only for illustrative purpose, it does not constitute an advice. Pls seek MCA consent prior to any circulation.

2. VAT Applicability in the Banking Industry
An explicit fee;
discount;
commission;
rebate;or a
similar type of charge.
Standard Rate
Supply of financial services to a recipient established outside the GCC.
Supply of investment grade precious metals
Zero Rated
Financial services if remunerated by way of an implicit margin.
Exempt
Fee / Commission / Charge
Operation of Bank
Money Transfers
Mortgages
Investment Banking
Card Related
Currency Exchange
Loans, Advances and Credit
Examples of Standard Rated
Financial Services provided to Overseas customers
gold, silver, platinum at purity level of 99.9% and tradeable in global bullion markets
Examples of Zero Rated
Lending, Deposit and Life Ins products
Trading in Shares, Bonds, Derivatives and Forex
Examples of Exempt Services
VAT Impact on the UAE Banking Industry

3. Input Tax apportionment
Recoverable Input Tax_______ * Mixed InputTax
Recoverable + Non Recoverable Input Tax
Input tax
If directly attributable to taxable supplies
Yes
Fully recovered
VAT return submission - on line.
Given to understand the return should be in Arabic and English.
Supporting documents can be in English
If directly attributable to Exempt supplies
Not eligible No
Yes
Proportionate basis No
VAT Impact on the UAE Banking Industry

4. Input Tax apportionment - Special Method - Partial Exemption
Prior approval from FTA is required for use of any special method.
Output value Based
Taxable supplies_______
Taxable and Exempt supplies 1.
x Residual Input Tax
Taxable transaction count
Total transactions count 2.
Transaction Method
x Residual Input Tax 3.
Sectoral Method
Some sectors Some sectors
Output Method Transaction Method
Company
VAT Impact on the UAE Banking Industry

5. Contacts Girish Chand Director T + 971 4 331 9501 T + 971 50 5528079
402, Al Rostamani Tower “A”
Sheikh Zayed road
PO Box 3168,
Dubai-UAE T F W
601 Al Salaam Towers
Hamdan Street
Abu Dhabi, UAE T
Affiliate to:
Aug 2017

6. THANK YOU
Aug 2017