Daily Exchange Rates by UAE Central Bank for VAT Purpose

Sanoop Ramachandran

HLB HAMT - Accounting Firm in UAE
Phone:- +971 4 327 7775
Mobile:- +971 50 677 5860
Email:- dubai@hlbhamt.com

    Get Free Consultation




    In a recent public announcement, UAE Federal Tax Authority has clarified on the use of exchange rates for VAT purposes. If a currency other than Dirham is used on the VAT invoice, the amount needs to be converted to AED based on the exchange rates approved by the Central Bank of UAE.

    The UAE Central Bank has been publishing official daily exchange rates on its website, commencing from 17th of May. The rate used on the VAT invoice and the one published by Central Bank should be the same; a slight change in even the decimal places won’t be accepted.

    For an invoice issued before 6pm, the previous day’s rate will be applicable, since Central Bank publishes the rate for the day at 6pm.  In the case of a local holiday, the rate published on the day before the holiday will have to be used.

    Tax invoices issued prior to 17th May, need not be reissued, provided that the foreign currency was converted to AED using a reliable source for exchange rates, which has been used consistently throughout the process. Some businesses would have used a combination of rates, which will have to be reissued since it cannot be relied on.

    The sole purpose of publishing exchange rates on the Bank’s website is for VAT reporting and compliance. The Central Bank has clearly stated that they won’t be responsible for any sort of loss that might arise from the use of the published rates. This applies to Thomson Reuters and people acting on behalf of the bank.

    Get in touch

    Whatever your question our team will point you in the right direction

    Start the conversation

    Are you Updated with the Visa Amendments in UAE?

    Jay krishnan, Partner

    image

    HLB HAMT - Accounting Firm in UAE
    Phone:- +971 4 327 7775
    Mobile:- +971 55 160 1291
    Email:- dubai@hlbhamt.com

      Get Free Consultation




      Changes in visa regulations in UAE has been one of the hottest topics of discussion in the last few days. The UAE government has been coming up with various changes in the visa formalities, almost everyday and the best part is that these regulations are meant to make the lives of expats much easier. Let’s check out the changes in UAE visa rules that has been announced of late.

      Widows, divorcees and their kids living in the UAE can apply for a one-year residency visa without a sponsor. The move is highly appreciative as it gives an opportunity to them to adjust to the situation and take care of final settlements, if any. One-year visa period is calculated from the date of death of the spouse and in the case of divorces, the date when the couple divorced.

      Expats illegally staying in the emirates even after visa expiration can heave a sigh of relief as a three-month general visa amnesty will be granted by the government under a scheme entitled ‘Protect Yourself via Rectifying Your Status’. This will help the illegal residents to either leave the country or pay the required fees and rectify their legal status. The scheme will commence from 1st August and end on 31st October.

      The list doesn’t end here. Another group who are going to be benefited by the humanitarian nature of UAE government are citizens from countries that are experiencing conflict or natural disasters. Expats from countries that are affected by conflict will be granted a one-year residency visa without any visa fine.

      Another alteration in policy comes with respect to transit passengers. They can enjoy the mesmerizing beauty of the city with a free visa for 48 hours and if they fell like prolonging their stay for another 48 hours, all they have to do is pay an amount of 50 Dirhams.

      The relaxation in visa policies comes as a blessing for foreigners in need. The initiative by the UAE government in making UAE an expat friendly country is something that deserves a round of applause.

      Get in touch

      Whatever your question our team will point you in the right direction

      Start the conversation
      Get in touch
      x
      x

      Share to:

      Copy link:

      Copied to clipboard Copy