Advance Payments and UAE VAT: When a Prepayment Doesn’t...

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2025-11-27 05:02:55 -

https://trio-tax.com/advance-payments-and-uae-vat-when-a-prepayment-doesnt-necessarily-trigger-tax-liability/

Advance Payments and UAE VAT: When a Prepayment Doesn’t Necessarily Trigger Tax Liability

Introduction Many businesses across the UAE routinely apply Value Added Tax (VAT) to every advance payment received from a client, even if there has been no formally finalized or agreed upon rule regarding this. This routine habit of prematurely issuing Tax Invoices for every upfront payment even for non-specific retainers can put an unnecessary strain

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