Automotive Sector

Contents

1. Introduction

1. 1.1. Overview

   1. 1.1.1. Short brief

   2. 1.1.2. Purpose of this document

   3. 1.1.3. Who should read this document?

   4. 1.1.4. Status of the document

2. Sale of Cars within the UAE

1. 2.1. Outright sales

2. 2.2. Hire-purchase arrangements

3. 2.3. Trade-ins

4. 2.4. Price display

5. 2.5. Sale of cars to foreign governments, international organisations, diplomatic bodies and missions

3. Sale of used/ pre-owned cars

1. 3.1. Profit Margin Scheme

   1. 3.1.1. Rationale for the Profit Margin Scheme

   2. 3.1.2. Conditions for applying the Profit Margin Scheme

2. 3.2. Instances when the Profit Margin Scheme does not apply

4. Lease of cars

1. 4.1. VAT implications on lease of cars

2. 4.2. Value of supply in the case of lease of cars

5. Export of cars

1. 5.1. Direct and Indirect export of cars

2. 5.2. Multiple sale of cars resulting in single export

6. Import of cars

1. 6.1. Imposition and accounting for import VAT

2. 6.2. Deferred payment at the time of filing the VAT return

3. 6.3. Import with the assistance of an import clearing agent

4. 6.4. Exceptions from import VAT

5. 6.5. Purchase returns after import

7. Warranty claims

1. 7.1. Warranty service included in the price of car

2. 7.2. Warranty service supplied for an extra charge

3. 7.3. Reimbursement of repair costs by distributors from manufacturers

8. Auctions

1. 8.1. Auctioneer acting as the principal supplier

2. 8.2. Auctioneer acting as an agent of the principal supplier

3. 8.3. Issuance of tax invoices by auctioneer on behalf of the principal supplier

4. 8.4. Commission charged by auctioneers

9. Promotions and discounts

1. 9.1. Free promotional gifts

2. 9.2. Discounts

10. Company cars and Demo cars

1. 10.1. Input tax recovery on the purchase, rent or lease of a company car

2. 10.2. Demo cars