I run a small interior design company helping private clients, rather than businesses, with their homes. As part of this service I often purchase furniture or furnishings from overseas on behalf of customers. A few months ago, a long-standing client asked if he could use my import code to import some furniture for a project I was working on with him. The invoice from the supplier was made out to my customer and he paid the supplier directly for the furniture himself. He purchased furniture worth Dh100,000, so the VAT involved was significant.
I didn't think about the implications of this at the time, but since then my customer and I have had a disagreement and I no longer work with him. We discussed this six months ago and I had forgotten about it until now when my next VAT return is due. I can see on the Federal Tax Authority portal that the VAT for his purchases are included in my current return as part of the import tax automatically populated by customs. How should I account for this VAT? And can I reclaim it as if I had purchased the furniture from the supplier myself? CJ, Abu Dhabi
This would be far more straightforward if you had purchased and paid for the imported furniture in your company name, and then sold it on to your client. In that scenario the output tax would be accounted for in the customs VAT box and you would have claimed the input tax under the reverse charge mechanism box, on the basis that you had an invoice in your company name.
By asking to use your import code I assume your client was hoping to avoid paying import VAT on his purchases. Unfortunately, it's not legal for him to do this. As the end user of this furniture he cannot escape paying VAT. I strongly advise people not to share import codes unless it is part of an agreed business transaction as the liability to pay the VAT falls with the importer on record.
Article 54 of the decree law states that input tax is recoverable by a taxable person where the goods and services are used or intended to be used for making taxable supplies. That’s not the case here. This furniture was not part of your taxable supplies and you are not able to recover the VAT on them as if you had purchased them.
The correct VAT treatment for this transaction comes under Article 50 of the Executive Regulations, titled Imports by Unregistered Persons, as you have effectively acted as an agent for your customer. Summary clauses say where a person, who is not registered for tax imports goods, is using an agent – who acts on their behalf and who is registered for VAT – the agent is responsible for the payment of the tax as though he imported the goods himself.
An agent who has paid tax, in accordance with this article, cannot then recover any VAT paid on behalf of another person as input tax. Instead, they should issue a statement to that other person, which contains full details of the import and the amount of tax paid in respect of the imported goods. Your customer can treat that statement as a tax invoice, which means if he was registered for VAT he would be able to claim that back as input VAT on his next tax return.As your customer is not VAT registered, he should pay you for the VAT that you have paid on his behalf even though he cannot recover it himself.
Your only course of action now is to pay the VAT as part of your next tax return and issue your customer with the statement as per clause 7 of the Executive Regulations. If you are no longer working together and he refuses to pay the VAT, unfortunately there is little you can do without resorting to legal action, which is unlikely to be practical for the recovery of the Dh5,000 sum.
Lisa Martin, a chartered accountant with more than 20 years of commercial finance experience, is the founder of accounting, auditing and VAT consultancy, The Counting House. Email any VAT queries to pf@thenational.ae
The biog
Mission to Seafarers is one of the largest port-based welfare operators in the world.
It provided services to around 200 ports across 50 countries.
They also provide port chaplains to help them deliver professional welfare services.
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
At Everton Appearances: 77; Goals: 17
At Manchester United Appearances: 559; Goals: 253
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
End of free parking
- paid-for parking will be rolled across Abu Dhabi island on August 18
- drivers will have three working weeks leeway before fines are issued
- areas that are currently free to park - around Sheikh Zayed Bridge, Maqta Bridge, Mussaffah Bridge and the Corniche - will now require a ticket
- villa residents will need a permit to park outside their home. One vehicle is Dh800 and a second is Dh1,200.
- The penalty for failing to pay for a ticket after 10 minutes will be Dh200
- Parking on a patch of sand will incur a fine of Dh300
Zimbabwe v UAE, ODI series
All matches at the Harare Sports Club
- 1st ODI, Wednesday, April 10
- 2nd ODI, Friday, April 12
- 3rd ODI, Sunday, April 14
- 4th ODI, Sunday, April 16
Squads:
- UAE: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed
- Zimbabwe: Peter Moor (captain), Solomon Mire, Brian Chari, Regis Chakabva, Sean Williams, Timycen Maruma, Sikandar Raza, Donald Tiripano, Kyle Jarvis, Tendai Chatara, Chris Mpofu, Craig Ervine, Brandon Mavuta, Ainsley Ndlovu, Tony Munyonga, Elton Chigumbura
Fight card
- Aliu Bamidele Lasisi (Nigeria) beat Artid Vamrungauea (Thailand) POINTS
- Julaidah Abdulfatah (Saudi Arabia) beat Martin Kabrhel (Czech Rep) POINTS
- Kem Ljungquist (Denmark) beat Mourad Omar (Egypt) TKO
- Michael Lawal (UK) beat Tamas Kozma (Hungary) KO
- Zuhayr Al Qahtani (Saudi Arabia) beat Mohammed Mahmoud (UK) POINTS
- Darren Surtees (UK) beat Kane Baker (UK) KO
- Chris Eubank Jr (UK) beat JJ McDonagh (Ireland) TKO
- Callum Smith (UK) beat George Groves (UK) KO
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
Poacher
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The Gandhi Murder
- 71 - Years since the death of MK Gandhi, also christened India's Father of the Nation
- 34 - Nationalities featured in the film The Gandhi Murder
- 7 - million dollars, the film's budget
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
