This Guide clarifies the application of the Profit Margin Scheme under the UAE VAT legislation, specifically focusing on the implementation of Article 29 of the VAT Executive Regulation. It details eligibility criteria for second-hand goods, antiques, and collectors' items, alongside transactions involving goods with blocked input tax under Article 53. The document provides comprehensive instructions for calculating the profit margin, invoicing requirements where VAT is not explicitly stated, and reporting obligations within the VAT Return. It serves as an essential resource for taxable persons opting to calculate tax on the margin rather than the full transaction value.
Profit Margin Scheme
Value Added Tax Guide | VATGPM1
January 2026
Contents
1. Glossary
2. Introduction
2.1. Purpose of this document
2.2. Who should read this document?
2.3. Legislative references
2.4. Status of the Guide
3. Eligible Goods and Eligible Transactions
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