This Decision introduces amendments to the value-added tax framework concerning the zero-rating of real estate transactions involving charities. It specifically modifies Article 38, which outlines the conditions under which the first sale or lease of a building can be zero-rated. The update clarifies the rules applicable when a building is specifically designed for use by a charity and intended solely for a relevant charitable activity. This legislative change aims to refine the application of VAT zero-rating, ensuring clarity for suppliers and charitable organisations on their tax obligations for qualifying real estate supplies in the UAE.
Title 6 - Supplies Subject to the Zero Rate
Article 38 - Zero-rating of Buildings Specifically Designed to be Used by Charities
The first sale or a lease of a building, or any part of a building, shall be zero-rated if it was specifically designed to be used by a Charity and solely for a Relevant Charitable Activity.
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