A company established and residing in the UAE (UAE Co.) is going to distribute applications it has developed. It is considering using the payment process of an intermediary (a “Merchant” or “Agent”) who declares that he is a merchant of record and takes the responsibility for VAT compliance in all markets where the subscriptions are sold.
The report from the Merchant will show which of the customers purchasing the subscriptions are located in the UAE. The Merchant is a non-resident in the UAE but has a VAT registration in the UAE.
The question
Will such engagement of the Merchant excuse UAE Co. from VAT obliga-tions in the UAE?
Verification of Merchant of Record status
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