Dubai – Mubasher: The difference between levying the value-added tax (VAT) at a certain applicable rate or at zero one, while both have to be paid, is that the payer of a zero-rate VAT should be refunded later by the tax authority.
However, businesses supply VAT-free products will not receive any refund, Al Bayan newspaper reported on Tuesday, citing the UAE’s Federal Tax Authority (FTA) as saying.
Furthermore, institutions pay the VAT at a zero rate must not pass the tax to its customers, FTA noted.
Put into effect in more than 150 countries, the VAT is the most popular tax in the world.
