DJG high-level meeting with Federal Tax Authority

DJG met with the Federal Tax Authority and a few other government departments
to discuss VAT on making charges at the wholesale level.

As you may be aware, recently, a few wholesale jewellery traders and manufacturers were
requested to pay VAT on making charges for B2B transactions on a retrospective basis.
This had created confusion in the market and the Group had taken up this matter with
Dubai Economy, the Department of Finance and the Federal Tax Authority.

We have submitted a detailed explanation of the nature of our sector/business and
the impact it can have if making charges for B2B transactions are to be collected on a
retrospective basis. In our meeting, we sought clarity on the prescribed format of invoices,
and an accurate interpretation of the law. We also expressed the sector’s willingness
to comply with the FTA’s interpretations of the VAT regulation and Reverse Charge
Mechanism going forward. Dubai Jewellery Group is continuing to interact with relevant
govt authorities in this regard.

We are waiting for a favourable response from the federal government authorities on this
matter and will keep you all updated on the outcomes.