Thousands of people march in the capital alone, mostly women but including some children and men
europe1 hour ago
UAE residents have been relieved from the value-added tax on their rents, but they will have to pay VAT on the parking charges in their residential building, according to tax experts.
The experts said that if the parking is charged separately in addition to lease rent, VAT would be applicable to such parking.
"If parking is charged separately in addition to lease rent, yes parking charges will be subject to VAT," said Nirav Shah, director, Fame Advisory.
He noted that if the building owner charges for parking as part of residential rent and parking is given as part of property, then VAT will not be applicable on that.
Revealing further details, he said those building dedicated only for parking will need to charge VAT from the end-users.
According to Pratik Shah, partner, WTS Dhruva Consultants, the parking charges may be liability of tenant based on legal contract arrangement.
However, payment of VAT related liability is on service provider.
But if the tenant agrees to pay for VAT based on contractual arrangement - liability is on tenant wherein the cost of VAT can be passed on. But if not, paying VAT becomes building owner's responsibility.
"In case of two separate charges - one for lease rent and one for parking charges, then parking charges could be liable to VAT as provision of service. Parking charges for commercial premises shall also be liable to VAT at 5 per cent," adds Shah.
As part of GCC-wide agreement, the UAE will impose 5 per cent VAT from January 1 on a host of goods and services.
However, the public parking, according to Nirav Shah, is likely to be free of VAT as part of public transport, but it's not yet clarified.
"As regards paid public parking, one may need to wait for clarification from government authority," adds Pratik Shah.
waheedabbas@khaleejtimes.com
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