Tax Consultants & Bookkeepers in the UAE


News This Week

UAE's Federal Tax Authority issues warning over VAT scam

The UAE's Federal Tax Authority on Tuesday issued a warning after reports of scammers trying to target bank customers over VAT refunds.

In response to reports that some bank customers have received emails from unidentified sources impersonating banks and financial institutions requesting personal data in the promise of helping them claim VAT refunds, the FTA reaffirmed that they can only be processed through its official website.

The authority said that some recipients have been asked to provide personal data, including names, credit card numbers, and PIN codes, claiming that providing the information will allow them to recover VAT. Read more...

Expert VAT Opinions

Can a restaurant add VAT at checkout?

Article 38 of the Decree Law and Article 27 of the Executive Regulations cover this topic. The base law is that advertised prices must include VAT. The Executive Regulations set out a few exceptions where prices may be shown exclusive of VAT. These exceptions are mainly relevant to the export of goods or services or selling to businesses who are themselves VAT-registered. Therefore, when selling to consumers all suppliers should show prices inclusive of VAT and must not add VAT at the point of payment. This covers all advertised prices whether they be on a supermarket or shop shelf, price labels on the goods, website prices and menus. Read more...

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.

The Authority asserted that only those goods, which had been subject to VAT before the supply in question, may be subject to the profit margin scheme. The profit margin is defined as the difference between the buying and selling price of an item, and is inclusive of taxes. Read more...

Federal Tax Authority announces Features of 'Digital Tax Stamps', Urges Cigarette Producers and Distributors to Comply with Scheme's Timeline

The Federal Tax Authority (FTA) has announced the features of the official “Digital Tax Stamps”, which are required to be placed on all cigarette packs circulated in local markets, making it possible to electronically track them from the production facility to the end consumer to ensure all Excise Taxes due have been paid.

The Authority also called on all producers and distributors of tobacco and tobacco products to comply with the timeline set for the “Marking Tobacco and Tobacco Products Scheme”, which went into effect on January 1, 2019. Read more...

Federal Tax Authority reports great success for Awareness campaign on Tax Invoice Requirements in Abu Dhabi markets

The Federal Tax Authority (FTA) has reported great interaction from retailers and consumers alike with its campaign to raise awareness about Tax Invoice requirements and urge all registered businesses to issue invoices for all transactions.

Titled “Tax Invoices: Your Right and Assurance”, the campaign was launched on January 28 to shed light on Tax Invoices and the conditions legally required to issue them, in addition to fostering greater cooperation between the Authority, the various Departments of Economic Development, and other relevant authorities and entities across the UAE. 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.