This Federal Tax Authority guide provides detailed guidance on the VAT treatment of activities within the UAE's automotive sector. It clarifies the application of Federal Decree-Law No. 8 of 2017 and its Executive Regulation. Key areas covered include the sale of new and used cars, with specific conditions for applying the Profit Margin Scheme under Article 43. The guide also details VAT implications for hire-purchase arrangements, trade-ins, leasing, and the zero-rating conditions for direct and indirect exports. Furthermore, it addresses imports, warranty claims, auctions, promotions, and input tax recovery rules.