Tax Consultants & Bookkeepers in the UAE


Latest News

UAE Central Bank issues new guidelines on implementing sanctions

The Central Bank of the UAE has issued new guidelines governing the implementation of sanctions related to anti-money laundering and combatting the financing of terrorism (AML/CFT).

The guidance, which came into effect on July 8, instructs licensed financial institutions to “develop, implement and regularly update an appropriate sanctions compliance programme encompassing a robust risk assessment, screening process and staff training programme”, the regulator said in a statement on Monday.

“This should be applied across their institutions, including branches, subsidiaries, and other entities in which LFIs hold a majority interest.”

LFIs include banks, finance companies and foreign exchange businesses. The guidance has been issued to help them effectively meet their obligations and they must be able to demonstrate compliance within a month of them being issued, the central bank said in its statement. Read more..

Expert VAT Opinions

A47) Can a company de-register from VAT without paying existing fines?

You cannot de-register from VAT without paying the fines first.

To solve this, you must submit the missed returns on the Federal Tax Authority portal immediately. Even if they are zero returns, this needs to be done to avoid further charges. I advise paying the existing fines, then completing a reconsideration form asking the FTA to waive the fines imposed.

The form can be found on the FTA website, but the form and all supporting documentation must be submitted in Arabic. To apply for reconsideration and de-registration, the FTA says you must have paid any outstanding tax and penalties first. Read more...

FTA Press Releases

The FTA encourages registrants to take advantage of penalty redetermination

The Federal Tax Authority has called on tax registrants in the UAE to benefit from the penalty redetermination scheme introduced by Cabinet Decision No. 49 of 2021 on Amending Some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE, which will be effective from 28th June 2021.

In a press release issued today, the Authority stressed the three conditions that must be met in order for tax registrants to benefit from the re-determination of unpaid administrative penalties imposed prior to 28 June 2021, to equal 30% of the total unpaid penalties.

The first condition is that the administrative penalty must have been imposed under Cabinet Decision No. 40 of 2017 before 28th June 2021, and some or all of it remains outstanding.

The second condition is that the tax registrant settles all payable tax by 31st December, 2021, so that there is no outstanding tax payable by the end of 2021. Finally, the third condition requires tax registrants to settle 30% of any administrative penalties payable and unsettled by 28th June, 2021, on or before 31st December 2021. Read more..

Federal Tax Authority holds 3 interactive sessions in Q1-21 as part of “Tax Clinic” initiative for SMEs

The Federal Tax Authority, FTA, has held three new interactive sessions via video conference, as part of the “Tax Clinic” initiative, a policy of direct and constant communication with business sectors which aims to promote tax awareness and avoid the most common errors that might occur while implementing tax procedures.

The FTA confirmed that the three awareness sessions held in the first quarter of 2021, Q1-21 focused on the small and medium enterprise, SME, sector. Teams of tax analysts and experts from the FTA’s Registration and Taxpayer Services Departments answered, via video conference, the inquiries of business representatives from across the emirates about registration and other tax obligations and raised awareness of how to submit returns and pay tax dues without errors. Read more..

Federal Tax Authority showcases 3 key initiatives during UAE Innovation Week

The Federal Tax Authority, FTA, is taking part in the UAE’s Innovation Week, which was launched last week, under the slogan ‘UAE Innovates 2021’, with the aim of enhancing and promoting an innovation culture and encouraging community participation in designing and developing future experiences and initiatives.

 His Excellency Khalid Al Bustani, Director-General of the FTA, said that the Authority’s participation in UAE Innovation Week is in line with its strategy to encourage innovation, development, and to contribute to the UAE’s efforts to strengthen the national strategy for innovation and digital transformation, in order to continuously develop and improve government services. His Excellency stressed that this contribution reflects the FTA’s understanding of customer needs and its efforts to meet their expectations and keep them happy. Read more..

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.