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Tax Consultants & Bookkeepers in the UAE

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VAT Firms in UAE's designated zones: Are all your supplies VAT-free?

The basic tenet of identifying and listing some of the free zones in the UAE as 'designated zones' under the country's's value-added tax legislation was to make them VAT free and consequently, be consistent with the tradition of keeping free zones typically free from taxes.

Though in intent and spirit it appears the legislation has achieved the objective, in practice, there are still instances and activities that result in the application of VAT on transactions within the designated zones. Consequently, the companies can blindly not apply VAT on any transaction it enters within the designated zones. Read more...

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Expert VAT Opinions

When exactly should I register for VAT and what records do I need to keep?

Do not wait until your turnover has reached Dh375,000 before registering for VAT. The law says you need to look back over the previous 11 months and forward for the next month, obviously using anticipated turnover for the future month. If this total exceeds the registration threshold you should register. Read more...

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FTA Press Releases

Federal Tax Authority Classifies ‘Eligible Goods’ for Calculating VAT as per ‘Profit Margin Scheme’ into 3 Categories

The Federal Tax Authority (FTA) has determined three main categories of “eligible goods” for calculating Value Added Tax (VAT) on the basis of the profit margin scheme, namely: Second-hand goods, meaning tangible moveable property that is suitable for further use as it is or after repair; Antiques, i.e. goods that are over 50 years old; and Collectors’ Items, such as stamps, coins, currency and other pieces of scientific, historical or archaeological interest. Read more...

Federal Tax Authority Classifies Labour Accommodation into Two Categories for Tax Purposes

The Federal Tax Authority (FTA) asserted that labour accommodation can be classified into two categories for tax purposes, taking into consideration whether the facility provides additional services – making it subject to the standard 5% Value Added Tax (VAT) – or is a purely residential building and therefore exempt from VAT (or zero-rated if the first supply). Read more...

Federal Tax Authority: Electronic System to Return VAT to Tourists Entering Final Preparation Stages

The Cabinet Decision to implement a system that returns Value Added Tax (VAT) to tourists will cement the UAE’s status as a premier global tourist destination, asserted the Federal Tax Authority (FTA). 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.

VAT BY INDUSTRY

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