Our client sold coal to a buyer in India for over 120 million dollars, but faced difficulties with the Indian partner regarding VAT issues.
UPPERCASE LEGAL lawyers helped resolve the problem. We studied the tax legislation and regulations, including the application of VAT in the Designated Zones of the UAE.
Through our research, it was revealed that, according to UAE Government Resolution No. (59) of 2017, Mina Saqr Port, where the delivery was made, located in the free zone of Ras Al Khaimah Maritime City, is considered a Designated Zone where goods unloading is not subject to VAT, even for mainland companies.
Additionally, we provided recommendations on the list of documents that need to be obtained from Indian partners in order to minimize risks.
As a result, the client was able to successfully negotiate with the partner and also obtain the necessary documents in case of a tax audit.
Through our research, it was revealed that, according to UAE Government Resolution No. (59) of 2017, Mina Saqr Port, where the delivery was made, located in the free zone of Ras Al Khaimah Maritime City, is considered a Designated Zone where goods unloading is not subject to VAT, even for mainland companies.
Additionally, we provided recommendations on the list of documents that need to be obtained from Indian partners in order to minimize risks.
As a result, the client was able to successfully negotiate with the partner and also obtain the necessary documents in case of a tax audit.
The project was worked on by managing partner Alexander Kukuev, head of international legal practice Ratmir Proskurnov