24 May 2018 UAE Central Bank begins publishing daily foreign exchange rates for VAT purposes The Central Bank of the United Arab Emirates (UAE Central Bank) on May 17, began publishing daily foreign currency exchange rates that UAE VAT-registered businesses should use when converting the Value Added Tax (VAT) due on a tax invoice from a price denominated in a foreign currency. This is a requirement provided by Article (69) of the Federal Decree-Law No. (8) of 2017 on Value Added Tax (the VAT Law). The UAE Central Bank has confirmed that these exchange rates are published solely for VAT reporting and compliance purposes. Consequently, this is likely to result in reconciliation differences with amounts converted to Dirhams in accordance with accounting rules. Document ID: 2018-1108 |
