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Tax Consultants & Bookkeepers in the UAE

News This Week

FTA clarifies VAT for independent director fees

The Federal Tax Authority (FTA) has confirmed that the date of supply for value-added tax (VAT) with regard to independent directors' services is determined either in accordance with the general rules or the special rules, depending mainly on whether the fees for the said directors were known from the outset or not. Read more...

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Expert VAT Opinions

Can I reclaim the VAT on a New Year party for my staff?

The Federal Tax Authority have issued some really useful Public Clarification guides which can be found on their website under 'getting help'. These guides give additional detail to the published legislation on certain topics. There is one entitled “Non recoverable input tax – entertainment services”. Read more...

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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...

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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