The UAE FTA has issued new guidance (VATP041) on how VAT applies to SWIFT-related transactions. Here’s what financial institutions need to keep in mind:
- SWIFT messages can now serve as valid records. Individual tax invoices may not be required in certain cases.
- Reverse charge rules apply when paying foreign banks via SWIFT.
- International fees linked to SWIFT must be treated correctly for VAT purposes.
- Input VAT can be recovered but only if documentation and usage conditions are met.
- This replaces the earlier guidance (VATP036) and updates the place of supply rules for such services.
Need clarity on applying this to your systems? Talk to us.