The UAE Tax Case Study. VAT on operations with debts

In this study, we will address two types of the transactions with debts:

1. Acquiring a debt arising from various obligations, and then receiving the payment from the debtors (both UAE-residents and non-residents).
2. Collecting debt in the interests of clients, receiving payments from debtors and transferring them to the clients apart from remuneration due.

Further, the first scenario will be referred as the “simple debt purchase” and the second as “factoring services” or “debt recovery services”.

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Author: Andrey Nikonov