Jul 19, 2018 
VAT
FTA classifies labour accommodation for VAT payment
The Federal Tax Authority said on Tuesday that it classified labour accommodation into two categories for tax payment purposes taking into consideration whether the facility provides additional services making it subject to the standard 5 per cent Value Added Tax or a purely residential building and therefore exempt from VAT.
The Authority underlined the importance of accurately determining the type of labour accommodation as it would affect the VAT incurred by the supplier.
FTA went on to explain that “labour accommodation” refers to areas
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