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May 02, 2025

April UAE Tax & VAT Roundup: What Businesses Need to Know Now

The UAE’s tax landscape is evolving fast, and April has brought a wave of new ministerial decisions, clarifications, and compliance requirements. At Nishe, we know how crucial it is for businesses to stay ahead of these changes, not just to avoid penalties, but to operate with confidence and clarity.

Here’s your essential roundup of what’s new, why it matters, and what you should be thinking about next.

Electronic Invoicing: Accreditation Rules Now in Place

Ministerial Decision No. 64 of 2025 sets out strict eligibility criteria for service providers under the UAE’s new Electronic Invoicing System. Only accredited providers can now offer e-invoicing services — and the bar is high. Providers must:

 

  • Be legally registered
  • Have AED 50,000+ paid-up capital
  • Show audited financials
  • Hold key certifications (like ISO 27001 & OpenPeppol PKI)

Why it matters: If you’re planning to implement e-invoicing (or already are), make sure your provider is officially accredited. Not sure? Ask us — we can help you verify.

Corporate Tax: Audited Financials Now Mandatory for More Businesses

Ministerial Decision No. 84 of 2025 is a game-changer. For tax groups, the rule has become stricter: every tax group needs audited special-purpose financials, no matter their size. All businesses with AED 50M+ revenue must prepare audited financial statements.

Why it matters: This pushes UAE reporting standards up a notch, increasing transparency and aligning with global best practice. Businesses need to act now to ensure their systems, auditors, and internal controls are ready.

VAT & Barter: New Clarifications

A lot of businesses think barter = no tax. Not so. The FTA’s new Public Clarification VATP042 confirms:
 

Barter transactions are fully taxable


VAT must be calculated on the market value of what you receive (goods or services)
Both parties must issue VAT invoices for their part of the deal

Why it matters: If you’re doing deals that don’t involve cash, make sure you’re accounting for VAT properly. This is a common tripwire — and we’re here to help if you need clarity.

Multinational Groups: Pillar Two Moves Forward

Ministerial Decision No. 88 of 2025 adopts the OECD’s guidance on the Global Anti-Base Erosion (GloBE) Model Rules. This impacts multinational groups and top-up tax calculations, ensuring UAE compliance with international tax standards.

Why it matters: If you’re part of a multinational group, your tax team needs to review your group structure and compliance processes ASAP to avoid exposure.

Nexus Rules for Non-Residents: Clarity at Last

Cabinet Decision No. 35 of 2025 gives clearer guidance on when a non-resident company is considered to have a taxable presence (nexus) in the UAE, especially in relation to real estate income and investment funds.

Why it matters: Foreign investors and holding companies should carefully assess their UAE activities to ensure compliance.

Qualifying Investment Funds: New Tax Guidance

Cabinet Decision No. 34 of 2025 refines rules for Qualifying Investment Funds (QIFs) and Qualified Limited Partnerships (QLPs). New exemptions and thresholds apply to real estate and investor diversity.

Why it matters: Investment vehicles should revisit their structures to maintain compliance and avoid unexpected tax liabilities.

VAT & SWIFT Messages for Financial Institutions

A fresh clarification (VATP041) allows SWIFT messages to be accepted as supporting documents for input VAT recovery, provided they include key details like the transaction amount and parties involved.

What Should You Do Now?

  • Audit your e-invoicing provider
  • Confirm your audit requirements for 2025
  • Review any barter transactions
  • If you’re part of a multinational group, assess your exposure
  • Review your investment fund compliance

Need support or advice? We’re ready to help you navigate every update with confidence.

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