Article 69 of Federal Decree-Law No. 8 of 2017 ("VAT Decree-Law") requires that where a supply was made in a currency other than UAE Dirham that the amount stated on the issued tax invoice should be converted into the UAE Dirham according to the exchange rate approved by the UAE Central Bank at the date of supply.
The UAE Central Bank began publishing exchange rates on 17 May 2018, therefore businesses are seeking clarity in respect of the FTA's approach for the period from 1 January 2018 up until 16 May 2018, and the approach which should be adopted since the publication of exchange rates by the UAE Central Bank.
The UAE Central Bank began publishing exchange rates on 17 May 2018. Businesses are required by the VAT Decree-Law to use this exchange rate on any tax invoice issued in a currency other than the UAE Dirham from this date onwards.
Any tax invoices issued in a foreign currency prior to 17 May 2018 should have been converted to UAE Dirham using a reliable source for exchange rates. Provided this is the case, and the same source has been used consistently, there will be no...