Menu

Tax Consultants & Bookkeepers in the UAE

News This Week

Are free zones in a bind?

Following the UAE government's decision to authorise 100 per cent foreign ownership in the mainland, free zones in the UAE will have to come up with novel ideas, reasons and incentives to convince existing firms to continue their operations in the free zones as well as attract more firms, officials and analysts said. 

In May, the UAE Cabinet approved 100 per cent ownership of UAE-based businesses by foreign investors by year-end. Currently, foreigners generally are not allowed more than 49 per cent of any UAE firm unless it is incorporate in a free zone.  Read more...

 

FTA classifies labour accomodation for VAT payment

The Federal Tax Authority said on Tuesday that it classified labour accommodation into two categories for tax payment purposes taking into consideration whether the facility provides additional services making it subject to the standard 5 per cent Value Added Tax or a purely residential building and therefore exempt from VAT.

The Authority underlined the importance of accurately determining the type of labour accomodation as it would affect the VAT incurres by the supplier. Read more...

Click here for more news updates

Expert VAT Opinions

What does 'Submit Voluntary Disclosure' mean on my tax return?

The law says that if a taxable person becomes aware that a return submitted to the Federal Tax Authority is incorrect, resulting in a calculation of the payable tax being less than required by more than Dh10,000, they can make a voluntary disclosure to the authority within 20 business days once they become aware of the error. Read more...

Click here for more VAT FAQ's

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

Subscribe to our mailing list

* indicates required

Meet us here