Tax invoice - a written or electronic document where the occurrence of a taxable supply
The authority went on to clarify that VAT implications arise only when there is an underlying taxable supply
. Despite the fact that the definition of "consideration" is wide and includes within its ambit all that is received or expected to be received in money or other acceptable forms of payment, VAT is only applicable when the payment relates to a taxable supply
The amount of audited arrears were categorised as: approved but unpaid (RM1.41 billion), under review (RM9.79 billion), taxable supply
(RM3.9 billion), exempted (RM0.93 billion), under investigation (RM3.52 billion).
By way of background, VAT is imposed at the standard rate of 5% on the taxable supply
of most goods and services (unless the supply is zero-rated (0%) or exempt) made in the UAE by a taxable person for consideration in the course of conducting business in the UAE.
To give a quick brief, VAT registered businesses should charge VAT on taxable supply
of goods and services, claim Input Tax Credit on VAT paid on their purchases, which will be deducted from VAT payable on sales.
Seminaries and religious societies may take shelter under this provision, if there is no other taxable supply
. Thus, income from a religious ceremony like Christmas or Navratri functions and religious events/poojas conducted on special occasions like religious festivals is exempt from GST.
The tax incurred by the owner on the building needs to be apportioned where there is an exempt supply, and the portion related to the taxable supply
(at 0% and 5%) may be recovered.
The onus of proof of proportion of the input attributable to taxable supply
ought to be fixed upon the registered person and the board may not be empowered to fix any specific manner excluding the rest of the manner as unacceptable one.
It is unclear, however, whether a section 156 election will remain valid if a new entity acquires property with the intention of making a taxable supply
within the succeeding 12 months and, due to unforeseen circumstances, does not make any taxable supplies during that period.
The concession was given to help businesses following a change of legislation that required self-storage companies to treat the charges made for a person storing goods at their premise as a taxable supply
subject to VAT at the standard rate.
The registered person shall issue an electronic tax invoice for every taxable supply
made by him, containing information as required under section 49 of the Federal VAT Act.