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 17^th 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 17^th 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.

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 1^st August and end on 31^st 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.