Reimbursement & Disbursement of Expenses in UAE VAT | CA. Manu - CEO & Partner | EmiratesCA

[@mrba.rasheedkariyad7568]

Thank you very much sir for your knowledge sharing

[@rochelleninabonus8317]

Thank you for the nice presentation. I would like to ask if for instance A authorized B to transact on his behalf and the recipient of the goods/service is A. However, the tax invoice received from the supplier is named to B instead of A. Therefore, is the transaction between A and B be considered reimbursement or disbursement?Considering that the conditions for both reimbursement and disbursement are present in the scenario.

[@claemirates]

Hi @rochelle nina bonus, Since B has received authorization from A to act on their behalf, it will be A’s responsibility to make the payment and he received the tax invoice in his name.. It can be construed as disbursement.. Accurate analysis can be made only after verifying the documents and contracts relating to this transaction.

[@PavanJerald]

My question is not related to this
my query is - while filing return suppose we missed out some purchase & expenses , so is that possible to claim in next return?

[@claemirates]

Dear Pavan, if you have missed in the current tax return, you can claim the input tax in the subsequent tax return. If you miss in the subsequent tax return, you will have to submit the Voluntary Disclosure.

[@umairshah4325]

@@claemirates and that voluntary disclosure will be I think there will be penalty of Dirhams 3000

[@NidhinCMA]

in the 5th condition, suppose A is making payment on behalf of B to supplier C, then A should issue an invoice to B with the amount paid without a markup , is that right?

[@umairshah4325]

as per the point number 5 it is like that so if anything else happen that's very weird

[@NaffarHussainOfficial]

Our Dewa bill is on the name of Other entity that is not part of Group and then they are raising the tax invoice to us for whole bill including sewerage charges.
Should they charge VAT on full bill as there is no VAT on sewerage by Government or amount other than sewerage charges?

[@claemirates]

Dear Mr.Naffar, even though DEWA has not charged VAT for the sewerage charges, when the bill amount incl sewerage is recovered from another company, it is taxable at 5 % because it will be considered as a reimbursement.

[@shoobucp2839]

Thank you for new knowledge sharing,,,,
is reimbursement applicable to premise rent paid by company B on behalf of company A? If Landlord has billed the rent invoice in the name of company A.

[@claemirates]

In your case, the invoice is in the name of the Company A & the responsibility for making the payment is on Company A itself. Company B is only making the payment on behalf of A. Hence, it will not be a reimbursement.

[@jasperk495]

Hi sir, in case the authorisation is missing but all other conditions for disbursement are satisfied. Will that be considered as disbursement or reimbursement?

[@pratikshakasliwal5970]

Sir if Mobile expenses incurred by company and then recovered from employees then what will be the vat implications ?

[@claemirates]

Hi, Input can be recovered. The reimbursement from the employee will be subject to VAT.
For Advisory Support, WhatsApp [phone].

[@umairshah4325]

@@claemirates if small query will be charged or free of cost

[@fairoosvalapra4805]

Is it possible to claim tax on food expense ?

[@claemirates]

It is subject to the nature of the expense and compliance with the Article 53 of the Executive Regulation.

[@rageaquil7732]

Hi . I'm currently working as accountant in Abu Dhabi . I would like to broader my knowledge with regards to this field. Is it possible that your company is looking for apprentice?

[@claemirates]

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