Jaxa Chartered Accountants

📘 Staff Training Insights – Incoterms 2020
Today our team participated in an engaging training session conducted by Mr. Jeffin Joseph focusing on Incoterms.

Incoterms (International Commercial Terms) were created by the International Chamber of Commerce (ICC) to provide a common set of rules for international trade, helping businesses clearly define who is responsible for transportation, insurance, customs procedures, and risk transfer.

🔹 Every Incoterm Answers 3 Questions:
• Who Pays? Which party bears which transportation and logistics costs.
• Who Arranges Transport? Which party is responsible for booking and organizing the shipment.
• When Does Risk Move? At which point does the liability for loss or damage transfer from seller to buyer.

🔹 The Two Big Groups:
• GROUP 1 (Freight Collect): Buyer takes responsibility earlier (EXW, FCA, FAS, FOB).
• GROUP 2 (Freight Prepaid): Seller pays for more transportation (CFR, CIF, CPT, CIP, DAP, DPU, DDP).

🔹 Key Takeaways:
• Sea Transport ONLY: FAS, FOB, CFR, and CIF.
• Any Transport Mode: EXW, FCA, CPT, CIP, DAP, DPU, and DDP.
• Risk transfer and freight payment are NOT the same (e.g., CFR/CIF split them at the loading port).
• Incoterms define responsibilities, costs, and risk transfer, but do not determine ownership of goods.

At Jaxa Chartered Accountants, we remain committed to strengthening tax and audit excellence through structured training programmes, knowledge sharing, and practical guidance, ensuring our team consistently delivers high-quality and compliant professional services.

UAE R&D Tax Credit – Now Operational

The UAE has issued Ministerial Decision No. 24 of 2026, providing the detailed framework for the R&D Tax Credit introduced under Corporate Tax.

What stands out?
✔ Up to 50% tax credit — but highly conditional
✔ Mandatory project-level pre-approval
✔ Strong focus on UAE substance (people, activity, documentation)
✔ Applies from 1 January 2026

🚨 DMCC Audit Deadline Alert 🚨

Submit Audited Financial Statements by 29 June 2026

For DMCC companies, ensure timely submission of your Audited Financial Statements (AFS) and Financial Statements Summary for the year ended December 31, 2025, via the DMCC Member Portal.

Why it matters:
✔ Avoid sanction on DMCC portal
✔ Comply with DMCC Company Regulations
✔ Ensure financial transparency
✔ Avoid penalties
✔ Smooth license renewal process

Act now — don’t wait for the deadline!

📘 Staff Training Insights – VAT Manual & Compliance

As part of our continuous professional development initiative, today we conducted an in-depth training session led by our Tax Partner, Mr. Sajith Narayanankutty, focusing on the Recovery of Input VAT, Reporting of Import of Goods and Services under Reverse Charge Mechanism (RCM), etc.

The session highlighted the importance of strict adherence to proper documentation for RCM, and the critical criteria for claiming input VAT to ensure full compliance with FTA guidelines.

🔷 Key focus areas included:
• Unpopulated Imports (Box 3): Low-value imports below AED 300 or courier shipments not declared with Customs must be manually disclosed in Box 3.
• Import of Services: Foreign services fall under RCM in Box 3, but out-of-scope expenses (e.g., overseas hotel/travel) should be excluded.
• Freelancer & Vendor Invoices: Freelancer invoices must be collected under their personal names (or self-invoiced) to protect Box 10 input claims, and software invoices (Google, LinkedIn, Facebook) must be updated to the company's name.
• RCM Time Limits: Input claims in Box 10 must respect the 2-consecutive-tax-period limit; late claims require the client to pay the VAT unless supplier delay is proven.
• Designated Zone (DZ) Rules: Supplies within or between DZs are Out of Scope (OOS) unless intended for consumption, while services in a DZ remain standard-rated.
• DZ to Mainland Supplies: Ex-Works sales are treated as OOS, whereas DDP or installation sales require standard tax reporting and Box 7 import adjustments via a mutual adjustment letter.

At Jaxa Chartered Accountants, we remain committed to strengthening tax and audit excellence through structured training programmes, knowledge sharing, and practical guidance, ensuring our team consistently delivers high-quality and compliant professional services.

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⚠️ RECRUITMENT FRAUD ALERT

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For authentic recruitment updates, follow only our official channels:

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www.jaxaauditors.com

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Do not share money or personal information with unauthorized sources.

STAY ALERT. VERIFY BEFORE YOU APPLY.

JAXA Chartered Accountants
Official Recruitment Team

UAE VAT Updates 2026

✅ 5-year time limit introduced for VAT refund claims

✅ Enhanced record retention requirements for refund applications

✅ Stronger anti-tax-evasion measures and input tax recovery controls

✅ Streamlined Voluntary Disclosure requirements

📅 Effective: 01 April 2026

🏛 Federal Tax Authority (FTA) – UAE

Eid Al Adha Mubarak 🌙✨

May this blessed occasion bring peace, prosperity, and happiness to you and your loved ones.

Wishing you joy, success, and countless blessings this Eid.