VAT Guide on Automotive sector in UAE

FTA has issued a guidance on Automotive Sector which about the VAT treatment of supplies made by motor vehicle dealers in the UAE including but not limited to the supply of new cars, the supply of used/ second-hand cars, supplies under warranty and the export and import of cars.

 

It should be noted that this guide is not intended to provide comprehensive details associated with VAT and is not intended for legal reference but as a framework discussing VAT issues relevant specifically to the automotive sector.

 

In this guide, FTA has provided a detailed information in relation to VAT treatment of the following business activities:

  1. Sale of cars within UAE
    • Outright sales of cars
    • Hire-purchase arrangements in relation to cars
    • Trade-ins of cars
    • Sale of cars to foreign governments, international organisations, diplomatic bodies and missions
  2. Sale of used/ pre-owned cars
  3. Lease of cars
  4. Export of cars
  5. Import of cars
  6. Warranty claims
  7. Auction of cars
  8. Promotions and discounts in relation to sale of cars
  9. Company cars and demo cars

 

You can refer to the guide attached here for detailed information with respect to the same [Automotive Sector – EN – 29 06 2021]

 

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