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Tax Consultants & Bookkeepers in the UAE

News This Week

Tourists will be charged a fee for VAT refund, clarifies UAE's FTA

The UAE is set to begin implementing the first phase of the Tax Refund for Tourists from Sunday, November 18 at the Abu Dhabi, Dubai, and Sharjah International Airports, the Federal Tax Authority (FTA) has confirmed.

The digital scheme – announced by the UAE cabinet earlier this year – is being undertaken by operator Planet and applies to the 5 per cent VAT that was introduced in the country on January 1. Read more...

Verify that used cars were subject to VAT, says FTA

The Federal Tax Authority (FTA) has called on retailers to verify that used cars were subject to the value added tax (VAT) before applying the Profit Margin Scheme, during an awareness workshop for car dealers. 

The workshop applauded the high tax compliance rate and increased tax awareness among businesses in the automotive sector, and reiterated its commitment to empowering businesses. The authority also introduced various procedures and tax treatment for the key sector, highlighting the FTA's steps to address any obstacles that businesses face. Read more...

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Expert VAT Opinions

Should we issue a Credit Note for overpaid Invoices and if so, what is the correct VAT treatment for this credit note?

When you receive the overpayment, you should record the cash and a liability in their debtor account, but you should not have recorded any VAT as part of this overpayment. When you return the funds you just reverse the previous entry, again without any VAT. Read more...

Click here for more VAT FAQ's

FTA Press Releases

 

Federal Tax Authority: Tax Refunds for Tourists Scheme Ready for Tourists at Abu Dhabi, Dubai and Sharjah International Airports Starting next Sunday

The Federal Tax Authority (FTA) announced that the digital system for the Tax Refunds for Tourists Scheme will be ready to issue and process VAT refund claims for eligible tourists to recover tax incurred on their purchases as of Sunday, November 18, 2018, at Abu Dhabi, Dubai and Sharjah International Airports. Read more...

Federal Tax Authority Sets Requirements for recovering Tax on Entertainment Services for Employees

The Federal Tax Authority (FTA) has determined the “Entertainment Services” supplied to employees, for which registered businesses cannot recover the taxes they incurred, explaining that these are mainly the expenses associated with activities to entertain personnel, such as staff parties that are free to attend. Read more...

Businesses Registered for Tax Urged Not to Disclose Information to Anyone Not Officially Authorised by the Federal Tax Authority

The Federal Tax Authority (FTA) has reiterated its call for registered businesses not to disclose their tax information to any individual or organisation not officially authorised by the FTA to handle this data. Read more...

For more FTA Press Releases click here

Maintenance of Financial records under VAT

As per Decree-Law, all businesses in the UAE need to record their financial transactions and ensure that their financial records are accurate and up to date. The final responsibility and accountability to comply with VAT is on the business.

Accounting Records and Commercial Books

As per Executive Regulations of Federal Law No. (7) on Tax procedures, Accounting Records and Commercial Books shall include the following:

  • Accounting books in relation to that Business, which include records of payments and receipts, purchases and sales, revenues and expenditures, as required under any Tax Law or any other applicable law, including:
    • Balance sheet and profit and loss accounts.
    • Records of wages and salaries.
    • Records of fixed assets.
    • Inventory records and statements (including quantities and values) at the end of any relevant Tax Period and all records of stock-counts related to Inventory statements.

Businesses that do not think that they should be VAT registered should maintain their financial records in any event, in case the authorities need to establish whether they should be registered.

Contact Finance Works to maintain your books and records and implement financial systems that are VAT ready and compliant.

VAT BY INDUSTRY

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