The UAE VAT Profit Margin Scheme lets a VAT-registered dealer of eligible second-hand goods, such as used cars, antiques, and jewellery containing precious metals or stones, charge VAT only on the profit margin instead of on the full selling price. The goods must have already been subject to VAT before the current sale, and the dealer must not have recovered input tax on the original purchase. The scheme is set out under Cabinet Decision No. 52 of 2017 (Article 29) and clarified by FTA VAT Public Clarification VATP001.
Read the full guide, including eligibility conditions, the VAT calculation formula, worked examples for used car and antique dealers, required stock records, and tax invoice rules, here:
