TaxSavvyAE

VAT on assets sold at closure

We are selling our equipment before closing. Is VAT due?

The situation

Yes. Sales of business assets by a registered person are taxable supplies, so VAT is charged until deregistration.

The law

  • Art 3, Federal Decree-Law 8 of 2017: Standard rate on taxable supplies

What it means for you

Example: selling equipment for AED 80,000 means charging AED 4,000 VAT. Assets kept at deregistration may also attract VAT under the deemed supply rules. Plan disposals before the final return.

What to do

  1. List assets to sell.
  2. Invoice with VAT.
  3. Include sales in the final return.
  4. Check deemed supply for kept assets.

We can do this for youCompany liquidation and deregistration: VAT and Corporate Tax deregistration, visa cancellation and licence cancellation: AED 4,000

Related