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Arabian Business
3 days ago
- Business
- Arabian Business
Eid Al Adha 2025 dates announced; UAE petrol prices change; new tax rule revealed; Dubai real estate tokenisation – 10 things you missed this week
The UAE has announced Eid Al Adha holiday dates for the public and private sectors next week. The long-awaited announcement came during a week which also saw updated tax rules, the imminent change of petrol prices, a Dubai real estate tokenisation project and more. Catch up on 10 of the biggest news stories this week, as selected by Arabian Business editors. UAE announces Eid Al Adha 2025 holidays The UAE has announced Eid Al Adha 2025 holidays for the public and private sectors. The holidays will begin on 09 Dhu Al-Hijjah 1446 AH, corresponding to Thursday, June 05, 2025, and will continue until 12 Dhu Al-Hijjah 1446 AH, corresponding to Sunday, June 08, 2025. Official work will resume on Monday, June 09, 2025. UAE petrol prices to change for June 2025 The UAE is set to announce petrol prices for June 2025 this week. Petrol prices increased fractionally in May, following two months of increases, although prices for motorists filling up on Super 98, Special 95, E-Plus 91 and diesel have remained stable. It is currently significantly cheaper to fill up a tank than year ago, with all categories becoming more affordable, despite prices fluctuating throughout the past 12 months. The UAE Ministry of Finance has issued a Cabinet Decision introducing a new tax treatment option for unincorporated partnerships. The move is part of the government's ongoing efforts to enhance tax transparency and improve the business environment. Under the Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, unincorporated partnerships are generally regarded as tax transparent entities. New Dubai road to cut journey times from 20 minutes to just 3.5 A new road in Dubai will slash journey times in one neighbourhood from 20 minutes to less than four. The Roads and Transport Authority (RTA) is set to open a new entry and exit point to Al Warqa directly from Sheikh Mohammed Bin Zayed Road early June 2025, aiming to facilitate smoother access to and from the neighbourhood. Once complete, the project will increase road capacity by 5,000 vehicles per hour, reduce travel time by 80 per cent—from 20 minutes to just 3.5 minutes—and cut trip distances from 5.7km to 1.5km. The initiative is being implemented in collaboration with the Virtual Assets Regulatory Authority (VARA), the Central Bank of the United Arab Emirates (CBUAE), and the Dubai Future Foundation (DFF) as part of the Real Estate Sandbox. Zand Digital Bank has been appointed as the banking partner for the pilot phase. Binghatti Holding Ltd has acquired freehold land spanning over 8 million square feet of gross floor area for its first large-scale master-planned residential community in Dubai. The Dubai-based real estate developer, known for luxury-branded residences, expects the development to have a total value exceeding AED 25 billion. The land sits in Nad Al Sheba 1 within Dubai's Meydan district. The area previously housed the Nad Al Sheba Racecourse, which served as the former venue for the Dubai World Cup. The location maintains connections to major roads and sits near Dubai's key landmarks. Disneyland Abu Dhabi triggers real estate shift: Price moves, investor interest and new hotspots identified Disney recently announced a theme park in Yas Island, Abu Dhabi, marking its seventh destination globally. According to real estate experts, the announcement is already positively impacting the capital's property market. While the project is years from completion, early signs point to growing investor interest, increased inquiries for off-plan units, and early price adjustment discussions. 'Even for an established, world-class tourism and leisure hub, Yas Island's recent announcement of Disneyland Abu Dhabi is a major touristic coup, and yet another reason why Yas is one of Abu Dhabi's most dynamic residential investment destinations. The news has put Yas firmly in the spotlight and immediately boosted investor confidence in this world-class destination,' Riyad Magdy, Chairman and Founder, Oia Properties, said in an exclusive interview with Arabian Business. EXCLUSIVE: Dubai real estate giant Sobha Realty eyes 3 Texas cities for major U.S. expansion Dubai-headquartered luxury property developer Sobha Realty has revealed more of its plans to expand into the United States market, with Texas cities forming the 'cornerstone' of its international growth strategy. The company, which has operated in the UAE since 2013, will focus on Dallas, Houston, and Austin for its U.S. debut. In an exclusive interview with Arabian Business, Ravi Menon — Chairman of Sobha Group — cited the cities' rapid population growth, strong economic fundamentals, and demand for luxury residential developments as key factors in the decision. UAE malls in 'non-prime' areas could face pressure from Chinese goods diversion amid U.S. tariffs The new U.S. tariffs imposed by Donald Trump could create 'ripple effects' throughout global supply chains that could eventually reach the UAE market, according to PP Varghese, Head of Professional Services at Cushman & Wakefield Core. 'While the UAE doesn't heavily import directly from the US, many products pass through complex international supply chains where tariff-related price increases get passed down,' he told Arabian Business. UAE takes legal action against 30 domestic worker recruitment rulebreakers The UAE is penalising domestic worker recruitment offices over rule breaking and violations of guidelines. The Ministry of Human Resources and Emiratisation (MoHRE) has taken legal action against 30 domestic worker recruitment offices across the UAE after confirming their involvement in 89 violations flagged during the first three months of 2025. The measures form part of the Ministry's ongoing efforts to implement its integrated field and digital monitoring system, which aims to identify and address any violations by domestic worker recruitment offices and ensure their compliance with relevant legislation.
Forbes
14-05-2025
- Business
- Forbes
UK Tax Considerations For Overseas Sellers
In moves to protect businesses located in the UK, there have been a number of recent changes to ensure that the UK taxes due from overseas sellers selling into the UK are being collected. E-commerce businesses are particularly impacted by the UK's tax rules The complexities of the UK's indirect tax landscape can be challenging for overseas businesses to navigate when starting to sell here for the first time, especially for those selling to consumers. For those importing goods they will need to consider Customs Duty and sellers of both goods and services will need to consider VAT too. VAT and Customs Duty are referred to as indirect taxes. Customs Duties are irrecoverable whereas VAT paid by a business can in principle be reclaimed, but not always. As businesses are charged VAT on their purchases and account for VAT on their sales, the VAT 'under management' at any one time can be as much as 40% of the total of costs and revenue of a business, and even a small error can lead to substantial impacts on costs. As such, prevention is always better than cure, and advanced consideration of whether UK VAT needs to be accounted for on sales, along with determining whether VAT can be reclaimed on purchases, is recommended. The standard-rate of UK VAT is 20%, but there are also 5% and 0% rates. Certain transactions may also qualify for exemption or be outside the scope of UK VAT entirely. There is no UK VAT registration threshold for overseas businesses trading in the UK. As a result, even one sale for a modest value can trigger an obligation to register for VAT in the UK in order to account for any VAT charged or incurred. This can also mean that large retrospective liabilities can build up if an overseas seller does not register for and start accounting for UK taxes at the right time, especially as there are no time limits applicable to late VAT registrations. There are also penalties and interest charges for late registration/ payment of taxes due. There are a series of VAT rules that consider: The rules above also vary depending on whether the business is selling goods or services, and the dividing line between the two is not always clear. Once a business is UK VAT registered, it typically has to file a VAT return every three months, although there is an option to file returns monthly which can help with cashflow should the business regularly be in a VAT repayment position. Furthermore, it is a requirement for most UK VAT registered businesses to prepare and submit VAT returns digitally in accordance with the Making Tax Digital (MTD) for VAT requirements. They must also maintain digital records of all transactions to be included within each return, which effectively results in the ability to digitally trace a particular transaction from the original data source, such as their accounting software or an Excel spreadsheet, all the way through to their final VAT return box figures. Getting the VAT rate right is not only important from a compliance perspective, but it can also have a significant impact on margins, particularly when dealing with consumers who will be sensitive to the VAT-inclusive price. There are also exemptions from charging VAT which apply to certain financial, insurance, medical and gaming services. This adds additional complexity as there is no need for businesses to charge VAT on exempt sales, but the supplier is unable to recover the VAT on its purchases relating solely to those exempt supplies. This can result in businesses being partially-exempt, with the need to carry out detailed calculations to determine the amount of VAT they can reclaim. Goods imported to the UK must be declared by the submission of a customs entry, containing data elements related, in particular, to the type of goods (commodity code), their origin and their value. The customs entry must be submitted by an entity established in the UK – usually a customs clearance agent, representing an importer. The importer must have a UK EORI number, or if not established in the UK, be represented by an agent willing to take responsibility for any liability arising from the declaration (indirect representation). UK customs duty will be charged when the goods enter the UK. Post Brexit, the UK has agreed preferential trade deals with some countries that reduces the rate/ amount of import tariffs payable. The UK government continues to aspire to agree more trade deals. Where the imported goods are owned by a UK VAT registered importer, import VAT is in principle recoverable provided certain administrative steps are followed. There are complex rules to determine the amount of customs duty to be paid based on factors such as the origin, value and classification of the imported goods. As importers are legally responsible for the accuracy their customs declarations, it is recommended that clear instructions are provided to customs agents, and that checks are performed to ensure those instructions are followed. Reports can be obtained from HMRC containing all data declared by, or on behalf of an importer (MSS data). The general place of supply rules for the sale of both B2B and B2C goods state that VAT should be charged where the customer is located. As such, non-UK businesses selling any taxable goods for any value in the UK are required to register for UK VAT, due to there being no VAT registration threshold for non-established sellers in the UK. As discussed above, a UK VAT registration will usually require a business to submit quarterly (or occasionally monthly) VAT returns to the UK tax authorities. Valid VAT invoices that meet certain criteria will also need to be issued to both business and non-business customers in the UK. When goods physically located outside of the UK are imported into the UK, someone will need to act as the 'importer of record' to pay the import taxes due. Import taxes have two main components. For imports of goods (consignments) valued at £135 or less, non-UK sellers selling to UK consumers are required to register and charge VAT at the point of sale. This is instead of paying import VAT. Overseas sellers to UK businesses can avoid having to UK VAT register if the customer self-accounts for the UK VAT due. Consignments valued at over £135 are subject to import VAT rules. This means that non-UK sellers may need to VAT register to pay the import VAT and duties on clearance, and will be able to reclaim this import VAT on their UK VAT returns. They will then account for sales VAT on a domestic sale of the goods made within the UK. Alternatively, the overseas seller may be able to avoid having any UK VAT obligations if its customer agrees to act as the importer of record. However, non-UK businesses are unable to start charging VAT on UK sales until they receive their UK VAT registration number, despite this VAT still being owed to the UK tax authorities. As such, it is recommended that non-UK businesses waiting to receive their UK VAT registration number should increase their prices to recognise this additional VAT charge, and to tell their customers the reason for this increase. For cross-border sales of services there are specific 'place of supply' rules which determine the country in which VAT is payable. The general place of supply rules for services are as follows. It should be noted that non-UK businesses that do not have a presence in the UK, are unlikely to need to register for UK VAT when the place of supply of their services is in the UK. However, where the business has some sort of presence in the UK, for example a server or an office, care is needed to determine whether this creates a fixed establishment in the UK, as this will typically require the overseas company to register for VAT in the UK and to charge UK VAT on its sales. A fixed establishment is an establishment other than the business establishment, which has the permanent human and technical resources necessary for providing or receiving services. If an overseas business has a temporary presence of human and technical resources in the UK, this does not create a fixed establishment in the UK. If there is no need for an overseas business to register for UK VAT, then no VAT will be charged on the supply of their services to UK customers. For B2B supplies of services made specifically to UK VAT registered businesses, the UK business itself is required to self-account for any VAT due using the Reverse Charge mechanism. There are, however, a number of exceptions to these place of supply rules, including for services relating to land, hiring of goods and broadcasting, telecommunications and electronically supplied services. As evidenced above, there are a number of different indirect tax considerations for overseas based businesses when doing business in the UK. It is therefore recommended that businesses trading in the UK should seek local advice in order to determine the most efficient and compliant indirect tax options and procedures available to them. Overseas businesses that have been selling into the UK for some time and not yet taken action to register and account for UK taxes should review what steps are needed to regularise their position.
