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Tax Consultants & Bookkeepers in the UAE

In the News

 

Profit margin scheme applies only to goods already subjected to VAT: FTA

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The Federal Tax Authority (FTA) has reaffirmed on Monday that the profit margin scheme - which allows a taxable person to calculate value added tax on eligible supplies on the basis of the profit margin earned instead of the original selling price - cannot be used in cases where VAT was not earlier charged.

Such instances include if the goods were purchased by the taxable person prior to the implementation of VAT, or if stock in hand was also acquired prior to January 1 2018, the FTA clarified. Read more...

 

 

New system to collect tobacco tax starts in January in UAE

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A scheme to digitally track all cigarette products to guarantee compliance with excise tax requirements in the UAE will be launched on January 1, 2019.

Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and Chairman of the Federal Tax Authority (FTA), issued a decision regarding the implementation of the Marking Tobacco and Tobacco Products Scheme.
 Read more...

 

 

Is VAT applicable on used cars in UAE? FTA clarifies

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The Federal Tax Authority (FTA) asserted that only those goods which have previously been subject to VAT before the supply in question may be subject to the profit margin scheme. As a result, stock on hand of used goods which were acquired prior to the effective date of Federal Decree-Law No. (8) on Value Added Tax, or which have not previously been subject to VAT for other reasons, are not eligible to be sold under the profit margin scheme. VAT is, therefore, due on the full selling price of such goods.  Read more...

 

 

Saudi tax authority urges VAT registration by Dec 20

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Saudi Arabia has again called on businesses whose annual revenues exceed $99,900 (SR375,000) to register for VAT before December 20.

In August, the General Authority for Zakat and Tax (GAZT) discovered 323 VAT-related violations in the retail industry alone. It said companies who fail to register for the tax on time will be subject to penalties as per VAT law and regulations. Read more...

 

 

Tourists claiming UAE VAT refund may be subject to secondary checks, says operator

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Tourist visitors will be able to claim tax refunds on their purchases within minutes as part of a new digital system for the Tax Refunds for Tourists Scheme – but may be subject to secondary checks as they exit the country, the company hired to operate the digital system for the UAE’s Tax Refunds for Tourists Scheme has said. Read more...

 

 

Tourists will be charged a fee for VAT refund, clarifies UAE's FTA

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The UAE is set to begin implementing the first phase of the Tax Refund for Tourists from Sunday, November 18 at the Abu Dhabi, Dubai, and Sharjah International Airports, the Federal Tax Authority (FTA) has confirmed.

The digital scheme – announced by the UAE cabinet earlier this year – is being undertaken by operator Planet and applies to the 5 per cent VAT that was introduced in the country on January 1. Read more...

 

 

Verify that used cars were subject to VAT, says FTA

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The Federal Tax Authority (FTA) has called on retailers to verify that used cars were subject to the value added tax (VAT) before applying the Profit Margin Scheme, during an awareness workshop for car dealers. 

The workshop applauded the high tax compliance rate and increased tax awareness among businesses in the automotive sector, and reiterated its commitment to empowering businesses. The authority also introduced various procedures and tax treatment for the key sector, highlighting the FTA's steps to address any obstacles that businesses face. Read more...

 

 

UAE gold demand set to rebound on VAT

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Gold jewellery demand in the UAE fell six tonnes in third quarter, down 13 per cent year-on-year, but traders are upbeat of a recovery in the last quarter on the back of an impending VAT refund scheme for tourists.

The latest market update from the World Gold Council said on Thursday the demand slump was also felt across the Middle East region as global demand for the yellow metal rose slightly in the third quarter to 964.3 tonnes, up from 958.1 tonnes in the same period a year ago. Read more...

 

 

UAE businesses told to keep tax data confidential

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The Federal Tax Authority (FTA) has called on businesses registered for tax purposes not to disclose their financial or tax data to any person or organisation that is not officially authorised to deal with such data.

The authority stressed in a statement issued on Saturday that it is necessary to remain vigilant about messages received via e-mail or mobile phone and not to share tax registration numbers (TRN) or financial account numbers with any entity.
 Read more...

 

 

UAE tourists can claim VAT refund from November 18

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The UAE Federal Tax Authority (FTA) has announced that the tax refund scheme for tourists will come into effect from November 18, allowing eligible tourists to request refunds of value added tax (VAT) incurred on their purchases.

The first phase will see the digital system of the Tax Refund for Tourists Scheme implemented at Abu Dhabi, Dubai and Sharjah international airports. As of mid-December, the system will be fully operational to include all airports and land and sea ports in the UAE. Read more...

 

 

New biannual tax return commences next month in UAE

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The Federal Tax Authority (FTA) will introduce a new biannual tax period next month for certain sectors, said Khalid Ali Al Bustani, director-general, FTA.

"Next November, a new biannual tax period will be introduced for some small businesses, commercial real estate owners, and board members, and they will be informed of the procedures for their new tax periods," said Al Bustani. Read more...

 

 

UAE records strongest excise tax compliance

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The Federal Tax Authority (FTA) on Saturday said the UAE registered one of the highest compliance rates of 97.7 per cent for tax returns requirements of excise tax.

Revealing figures at the completion of one-year of imposition of excise tax, the FTA said 715 companies had registered for the tax returns. Read more...

 

 

VAT refund process simplified for Emiratis

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Khalid Ali Al Bustani, director-general of the Federal Tax Authority (FTA), has announced that procedures to reclaim value-added tax (VAT) for UAE nationals who are building new residences have been simplified with electronic procedures. Read more...

 

 

Compensation payments are not subject to VAT, the Federal Tax Authority says

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Companies and consumers in the UAE will not be taxed on payments listed in their business and legal contracts, such as a speeding ticket or a late-delivery fine, unless these payments are related to the supply of goods and services, according to the Federal Tax Authority. Read more...

 

 

Bahrain's parliament approves draft VAT law

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Bahraini legislators approved a draft law on Sunday that would see value-added tax (VAT) imposed for the first time in the kingdom, state news agency BNA reported.

The House of Representatives approved a Gulf Arab agreement to introduce VAT after a royal decree ordered parliament to hold an extraordinary session on Sunday, BNA reported, without giving details of the vote. Read more...

 

 

FTA clarifies VAT on healthcare of employees' families

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The Federal Tax Authority issued a clarification on insurance that states that an employer would only be able to claim the input VAT on the health insurance provided to employees' families if it is the legal obligation of the employer to provide the insurance.

Pratik Shah, partner at Dhruva Advisors, said there is no legal obligation in Dubai on the employer to provide health insurance to the family of an employee, whereas Abu Dhabi mandates employers to provide such extended benefits. Read more...

 

 

The UAE Explained: Can tourists claim their tax back?

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It is nine months since the UAE introduced VAT, and the good news for tourists is that they will soon be able to claim it back. But how?

Here is a guide to everything you need to know about the VAT process for non-residents:

- When will tourists be able to claim back VAT on their purchases?

An “advanced integrated digital system” to refund VAT to non-residents is under process and will be operational from November 18.

- Will all tourists in the UAE be able to claim their VAT back?

The only exceptions will be residents of other Gulf Cooperation Council countries: Saudi Arabia, Kuwait, Bahrain, Oman and Qatar. Read more...

 

 

VAT diversifies UAE government revenues with minimum rise in prices

Introduction of value added tax in the UAE has diversified the government revenues enhancing the country's institutional capacity to respond to the oil price shock while limiting inflationary impact to the minimum, said credit rating agency Moody's.

Of the six Gulf Cooperation Council (GCC) states, only Saudi Arabia has introduced the tax on schedule along with the UAE. While the VAT is at a uniform rate of 5 per cent, the level of tax compliance will be clear only when the revenue receipts are announced. Reports suggest that around 260,000-275,000 of an estimated 350,000 companies have registered for VAT so far. Read more...

 

 

After gold, this sector may get VAT exemption

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Following UAE's decision to exempt gold and precious metals from the value-added tax, the maritime industry could also get a relief as the Federal Transport Authority is negotiating VAT exemption with the Federal Tax Authority, confirmed a senior official on Monday.

Hessa Al Malek, executive director of maritime transport at UAE's Federal Transport Authority, said the meeting with the Federal Tax Authority will be held soon to discuss the issue. Read more...

 

 

UAE set to roll out new digital tax system for tobacco products

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The Federal Tax Authority (FTA) is set to launch a tax control system in UAE for tobacco products to efficiently collect taxes and combat tax evasion.

In a statement issued on Saturday, the FTA has asserted that Cabinet Decision No. (42) of 2018 On Marking Tobacco and Tobacco Products establishes an accurate and effective control system allowing the authority to efficiently collect taxes, ensure transparency and combat tax evasion. Read more...

 

 

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

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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. Read more...

 

 

Tourists in UAE won't get retrospective VAT refund

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Tourists in the UAE are unlikely to get VAT refunds for purchases made before the refund scheme comes into effect from November 2018, according to UAE-based tax experts.

They say that as per Article (68) of Cabinet Decision (52) on Executive Regulations, the Cabinet may issue a decision on introducing tax refunds for tourists, specifying the date from which the scheme comes into effect. Read more...

 

 

Bahrain will be next GCC state to implement VAT, say experts

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Bahrain will be the next country to implement five per cent value-added tax (VAT) after the UAE and Saudi Arabia as part of the GCC framework agreed between the six states, according to tax experts.

David Stevens, VAT implementation leader, EY, expects Bahrain, Qatar and Oman to implement in early 2019 - though no firm dates have been set yet - with Kuwait likely to be the last, perhaps later in 2019. Read more...

 

 

Tax Planning vs. Tax Evasion

Tax planning is the restructuring of activities in a way to maximise the tax benefits by making best possible use of all the legal options like setting up a new company in free zones, focussing on local purchases, and so on. 

On the contrary, tax evasion is a technique of refraining from tax liability with the intention of defeating the fundamental motive of the legislature. Read more...

 

 

VAT will attract more global investors to UAE realty

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When value-added tax (VAT) was introduced in the UAE and Saudi Arabia on January 1, 2018, initially stakeholders were wary on the potential impact of the new tax policy on the economy. 

A study conducted by Alliance Business Centers Network said that the UAE would be least affected by the imposition of VAT because it is one of the lowest globally compared to countries such as the UK, Switzerland, Germany, Mexico, South Africa and Australia. The study revealed that the VAT in UK and France was 20 per cent, which is substantially higher than the five per cent implemented in the UAE and Saudi Arabia. Read more...

 

 

Nearly fifth of Saudi retailers not complying with VAT, GAZT inspection finds

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A Saudi inspection campaign has led to the discovery of 323 value-added tax (VAT) violations by the General Authority for Zakat and Tax (GAZT) in the retail industry, according to local media reports.

According to Arab News, the campaign was designed to ensure that mobile phones, electronic centres and shops in the kingdom comply with the VAT system, and targeted 1,876 locations across the country. Read more...

 

 

FTA to hold tax clinics to promote compliance

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The Federal Tax Authority (FTA) has announced a new campaign to communicate directly with businesses.

The campaign kicks off on Sunday, August 12, 2018, in Ras Al Khaimah, before moving on to Fujairah and then the rest of the emirates for a duration of three months, where representatives from the Authority will be present at the Clinic to answer taxpayer queries regarding registration with the FTA and other tax obligations.  Read more...

 

 

Don't let UAE cashiers round up numbers for you

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Do not accept "rounding up". If the cashier cannot give you exact change, or close to it, make them "round down". It is your money. Moreover, all the other wheat stalks in the line behind you will thank you for it, and they will demand the same.

Always ask for a VAT invoice, which shows a Tax Registration Number (TRN) whenever you are being charged VAT. Chances are, the seller may not be registered. Which, by the way, is punishable by fine and imprisoment. Read more...

 

 

UAE clarifies rules on payment of VAT on commercial real estate

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When The 5 per cent VAT on commercial real estate must be paid prior to the completion of an asset sale, not afterwards, the UAE's Federal Tax Authority (FTA) said on Wednesday.  Read more...

 

 

Firms can't recover VAT on entertaining non-employees

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Companies in the UAE will not be able to recover value-added tax (VAT) paid on entertainment expenses for non-employees, according to a new clarification issued by the Federal Tax Authority (FTA).  Read more...

 

 

VAT in Saudi

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When Value Added Tax (VAT) was introduced in the UAE and Saudi Arabia on January 1, 2018, initially stakeholders were wary on the potential impact of the new tax policy on the economy. While a study by Alliance Business Centers Network revealed that the UAE will be least affected by the imposition of VAT, the introduction of VAT in Saudi Arabia is changing the market dynamics and bringing more transparency to the sector. Read more...

 

 

FTA clarifies goods eligible for profit margin scheme

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The Federal Tax Authority (FTA) on Wednesday said it had determined three main categories of "eligible goods" for calculating value-added tax (VAT) on the basis of the profit margin scheme. They are second-hand goods, meaning tangible moveable property that is suitable for further use as it is or after repair; antiques; and collectors' items.  Read more...

 

 

Are free zones in a bind?

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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. 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. Read more...

 

 

Investors with commercial realty need to clear VAT dues

Investors must clear their VAT dues on the sale or rental of commercial properties before proceeding with any transfer of ownership. Read more...

 

 

UAE banks now able to charge VAT on fees

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Banks have started charging VAT on various services offered, following a June circular from the Central Bank of UAE, which rescinded a previous notice to the contrary. Read more...

 

 

 

VAT refund to give a leg-up to tourism

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The UAE Cabinet's endorsement of value added tax (VAT) refund for tourists from the fourth quarter is expected to drive growth in the tourism and hospitality sectors, experts and executives say. Read more...

 

 

More relief as three UAE free zones are out of VAT scope

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The UAE's Federal Tax Authority (FTA) has added three new free zones to the list of designated zones that will be out of the five per cent VAT scope imposed earlier this year. Read more...

 

 

FTA enhances e-Services for custom clearance firms

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The Federal Tax Authority (FTA) has announced enhanced features of its e-Services to facilitate customs clearance companies with easier registration procedures and submission of tax returns. Read more...

 

 

Kuwait plans VAT bill vote by year-end - report

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Kuwait’s government is aiming for a parliamentary vote on a controversial value added tax (VAT) bill to take place before year-end, according to reports.  Read more...

 

 

 

Paying VAT on commercial property

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Since the implementation of the value-added tax (VAT) in January, there have been numerous discussions explaining its effects on real estate. Commercial property transactions, both leases and purchases, are not exempt from VAT and both tenants and purchasers are obliged to pay VAT on either the rent or the purchase price.  Read more...

 

 

UAE signs Agreement for the Avoidance of Double Taxation and Prevention of Tax Evasion with Saudi Arabia

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The UAE, represented by the Ministry of Finance (MoF), signed an agreement for the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to taxes on income and capital, with Saudi Arabia yesterday. Read more...

 

 

UAE's VAT taxpayers can appoint agents via government website

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UAE taxpayers can now connect directly with accredited tax agents – including accountants, lawyers or consultants – via a

 

 

 

Tax authority warns of data confidentiality

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The Federal Tax Authority (FTA) said on Sunday that it had not authorised any company to request personal or corporate financial or accounting data from businesses registered with the Authority for tax purposes. Read more...

 

 

UAE Exchange now authorised to accept VAT payments

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Money transfer company UAE Exchange has announced that it has now been authorised to start accepting value added tax (VAT) payments on behalf of the Federal Tax Authority (FTA) in the country. Read more...

 

 

Federal Tax Authority: Impact of VAT on Sales of Gold and Diamonds to Be Reduced Between Registered Dealers According to Reverse Charge Mechanism

The Federal Tax Authority (FTA) asserted that the new Cabinet Decision issued to regulate Value Added Tax (VAT) incurred by gold and diamond dealers registered with the FTA seeks to establish the adequate legislative environment and infrastructure for the gold and diamonds sector to thrive. Read more...

 

 

All you need to know about VAT on gold and diamonds in UAE

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The Federal Tax Authority (FTA) on Wednesday clarified that the new Cabinet decision issued about VAT reverse charge mechanism for the gold and diamond industry will only pertain to commercial transactions between registered dealers. Read more...

 

 

Al Bustani says taking VAT off gold and jewellery will allow industry to thrive

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Khalid Ali Al Bustani, the Director-General of the UAE's Federal Tax Authority, on Wednesday said cabinet's decision to decrease the impact of VAT on gold and diamond sector would allow the industry to thrive. Read more...

 

 

FTA outlines licensing procedure for exhibition, conference services

The Federal Tax Authority, FTA, on Wednesday said the removal of Value Added Tax, VAT, on services provided at exhibitions and conferences seeks to cement the UAE's status as a leading destination for local, regional and international forums. Read more...

 

 

FTA launches educational awareness videos for businesses

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The Federal Tax Authority (FTA) has announced the release of eight educational awareness videos targeting businesses, introducing them to the simple four-step procedure for submitting tax returns through its website. Read more...

 

 

Firms, individuals have to use exchange rates on the date of supply for VAT

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All those UAE companies and individuals who raise tax invoices in a currency other than the UAE dirham will have to use the exchange rates approved by the Central Bank as on the date of supply. Read more...

 

 

UAE's robust hospitality and travel sector remains unfazed by VAT impact

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The UAE's robust hospitality and travel sector has remained unfazed by the impact of the value-added tax (VAT) during the first few months of its implementation. The number of visitors rose 2 per cent to 4.7 million in the first quarter, while occupancy rate up 0.7 per cent to 87 per cent witnessing a sustainable growth. Read more...

 

 

FTA announces VAT refund procedure for UAE nationals

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The Federal Tax Authority (FTA) has set three requirements and procedures for UAE nationals to refund Value Added Tax (VAT) incurred on new residences. Read more...

 

 

 

Removing jewellery from the VAT regime may change the UAE's tax future

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The UAE Cabinet made a seemingly minor change earlier this month in how VAT applies to jewellery sales. It is significant for the way in which the VAT system will hold together in the GCC. It may even define the future of VAT in the UAE and the GCC for the next decade. Read more...

 

 

Kuwait to delay VAT implementation until 2021

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Kuwait is set to delay its implementation of a regional 5 per cent value added tax until 2021, according to parliamentary committee statement. Read more...

 

 

 

Cabinet approves resolution on VAT refunds for UAE exhibitions, conferences

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The Cabinet has approved a resolution pertaining to Value Added Tax (VAT) on conferences and exhibitions, in line with the government's ongoing efforts to support this sector and to enhance the country's status as a hub for meetings, incentives, conferences and exhibitions (MICE). Read more...

 

 

New system launched to detect tax dodgers

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The Federal Tax Authority (FTA) has announced launching a new electronic tracking system which uses digital tax stamps to ensure excise tax on tobacco products has been paid. Read more...

 

 

Company directors are required to pay 5% VAT

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The earnings of the director of a company are subject to value-added tax (VAT) if he undertakes services on a regular and independent basis and if the earnings exceed the mandatory registration threshold of Dh375,000, according to a note issued by the UAE's Federal Tax Authority (FTA). Read more...

 

 

VAT charges removed on gold at wholesale level

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The UAE has rolled back the 5 per cent Value Added Tax (VAT) on gold and diamond sectors at the wholesale level. Retailers will continue to impose 5 per cent on all jewellery transactions taking place at their shops. Read more...

 

 

 

Federal Tax Authority cautions against VAT exemptions in UAE

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The Federal Tax Authority (FTA) has reiterated its call for all registered businesses to collect Value Added Tax (VAT) and Excise Tax on all taxable transactions and from all customers, cautioning against exempting any individual or organisation that does not fall under one of the exempted categories specified in the UAE tax laws. Read more...

 

 

VAT relief for gold on the cards in UAE

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The UAE's gold jewellery trade hopes for a surprise in the form of a tax relief to boost sales that have gone into a dismal tailspin following the introduction of value added tax (VAT) in January. Read more...

 

 

Up to 75,000 UAE firms facing fines for failing to register for VAT

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Almost 75,000 UAE companies are facing potential fines and other punishments from the government having still not registered for a new value added tax (VAT).The 5 per cent tax rate came into force on January 1 and applies to most goods and services. Read more...

 

 

Beware: FTA to get tough on VAT evaders in UAE

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The Federal Tax Authority will get tough on companies, which are obliged to register for value-added tax (VAT) but have not done so from next month, said a senior official. Read more...

 

 

UAE achieves '98.8 per cent VAT compliance': Federal Tax Authority

Nearly 100 per cent of companies in the UAE that were obliged to pay value added tax (VAT) have since registered to do so, according to Khalid Al Bustani, director general of the Federal Tax Authority (FTA). Read more...

 

Jewellery industry, government in talks to levy VAT only on making-charges

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The gold and jewellery industry in Dubai is talking to the government to levy value-added tax (VAT) only on the making charges of the jewellery rather than the whole single piece as the new tax regime has taken shine off the yellow metal in the first quarter of this year. Read more...

 

 

Over half of UAE SMEs unprepared to file proper VAT returns

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Small and medium enterprises (SMEs) are still facing a lot of challenges as the first deadline for value added tax filing returns approaches, with more than 50 per cent of them still not ready to accurately file the returns, according to tax experts. Read more...

 

 

How VAT is driving digital transformation

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Tax authorities in the GCC are starting to use sophisticated digital platforms that require taxpayers to submit data in real time or near-real time, prompting companies in the GCC to enhance their digital capabilities. Read more...

 

 

UAE banks may hike fees to offset additional VAT costs

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As banks in the UAE grapple with the new value-added tax (VAT) regime and the high compliance costs associated with mandatory tax registration, it is likely that they follow international trends by increasing their fees to compensate for the additional costs, banking analysts said. Read more...

 

UAE nationals can claim VAT refund on home construction 

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Emirati house owners have the right to a five per cent value added tax (VAT) refund when constructing their homes, the Federal Tax Authority (FTA) has stated. Read more...

 

 

Beware of VAT fraud

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The introduction of the value added tax (VAT) in the UAE will bring forth a number of benefits to the country's economy and business environment, but experts warn business owners to beware the threat of fraud. Read more...

 

No VAT on sale of leased commercial property by taxable person, says FTA

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Leased commercial property will not be considered a supply during its sale by the taxable person, therefore, it will not be taxable, the Federal Tax Authority (FTA) and Dubai Land Department (DLD) clarified on Tuesday.  Read more...

 

What are the regulatory challenges for businesses in UAE, Saudi?

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Value added tax (VAT) implementation has been a considerable challenge for most businesses in the UAE and KSA, where compliance with taxes is not common. VAT represents the most comprehensive and transformative regulatory requirement that business has had to take on. Read more...

 

Why UAE consumers must ask for tax receipt 

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The Federal Tax Authority (FTA) has asked all UAE consumers to demand tax receipts from retailers when purchasing products or services to prevent attempts to manipulate the tax system. Read more...

 

 

Kuwait's parliament pushes back VAT vote

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Kuwait’s National Assembly will not look at a government-sponsored draft law on imposing taxes as a priority, according to reports.  Read more...

 

 

 

Businesses in UAE must display VAT inclusive prices to avoid penalties: FTA

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The Federal Tax Authority (FTA) has asserted that all businesses subject to Value Added Tax and Excise Tax must display prices of goods and services inclusive of tax in order to avoid administrative penalties. Read more...

 

 

Here are 3 easy steps for VAT registration in UAE 

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The Federal Tax Authority (FTA) said a taxable person or an official representative can register for value-added tax (VAT) in 3 easy steps through its website, taking no longer than 15 to 20 minutes. Read more...

 

 

Has VAT taken shine off gold in UAE?

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Consumers and gold jewellery retailers will have major relief if governments approve a proposal by the Federation of GCC Chambers of Commerce and Industry calling for a review of 5 per cent VAT on jewellery. Read more...

 

 

 

Consumer or supplier? FTA clarifies who'll pay VAT 

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The UAE's Federal Tax Authority (FTA) on Saturday clarified whom between suppliers and end-consumers should pay value-added tax (VAT) on goods and services delivered in 2018. Read more...

 

 

Companies may struggle to file accurate VAT returns, experts say

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UAE companies filing their first VAT returns will need to account for a number of variables that range from record keeping over the coming five years to making sure they don’t under claim the tariffs they collected, experts said.  Read more...

 

 

VAT inspectors scanning hundreds of products to catch out retailers that 'manipulate' prices

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Consumer affairs inspectors are scanning hundreds of products every day to catch out retailers trying to use VAT as an excuse to "manipulate" prices, the Minister of Economy has said.  Read more...

 

 

VAT recovery in the UAE is another thorn in the process of reclaiming the tax

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The introduction of VAT in the UAE and Saudi Arabia will have implications for conference and event businesses, as companies not registered for the tax in both countries will pay the levy when they hold events, according to a VAT recovery firm.  Read more...

 

 

Saudi January inflation spikes on VAT, gasoline price hike

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Saudi Arabia’s annual consumer price inflation jumped to 3.0 per cent in January after the government introduced a 5 per cent value-added tax and hiked domestic gasoline prices at the start of the year, official data showed on Sunday. Read more...

 

 

15 shops shut for hiking prices after VAT amid crackdown 

Fifteen shops in Abu Dhabi were shut down in January for unjustifiably hiking the prices of goods after the introduction of the Value Added Tax (VAT), officials said yesterday. Read more...

 

Bahrain central bank warns of budget deficit, says VAT coming  

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Bahrain’s central bank governor said on Tuesday that the country’s economic growth might accelerate because of the recovery of oil prices since mid-2017, but he warned that the government needed to be careful about its budget deficit. Read more...

 
 

59 complaints against VAT defaulters in Sharjah

The Sharjah Economic Development Department (SEDD) received 59 complaints about VAT-related violations in the first month of its implementation. Read more...

 

Saudi consumers spending to remain flat, spur consolidation among retailers, Rajhi says 

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Saudi Arabia’s consumer spending will remain flat up to 2020 as the kingdom implements reforms, including VAT, energy prices hikes and expat levies, which will push retailers to consolidate to gain a bigger market share, according to a new report by Riyadh-based Al Rajhi Capital. Read more...

 

IMF says Bahrain, Kuwait, Oman, Qatar will need more than a year to introduce VAT

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Bahrain, Kuwait, Oman and Qatar may need a year and a half to introduce an agreed 5 per cent value added tax rate, according to an International Monetary Fund official. Read more...

 
 
 
UAE shops told to give correct change after VAT 

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Abu Dhabi’s Department of Economic Development has changed instructions allowing retailers to round up prices following the introduction of value added tax. Read more...

 
 
 
 

VAT sees UAE firm's costs rise at sharpest pace since 2011 

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UAE non-oil private sector companies saw their sharpest increase in costs for 74 months in January, according to Emirates NBD’s purchasing managers’ index. Read more...

 
 
 
 

No VAT, excise tax increase over next five years in UAE 

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The UAE has ruled out increasing value-added tax (VAT) and excise tax over the next five years, said Obaid Al Tayer, UAE's Minister of State for Financial Affairs. Read more...

 

 

Federal Tax Authority: VAT is part of the final price

The Federal Tax Authority (FTA) explained that the final reduced prices for goods on promotional offers must include the 5% Value Added Tax (VAT), which is to be calculated as included in the new price after reductions by the sales outlets or service providers themselves. Read more...

 

VAT compliance a challenge for UAE firms, experts say

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Businesses are struggling to comply with VAT, with a significant number not yet registered, even as the Federal Tax Authority (FTA) waives penalties for late registration and extends deadlines for filing tax returns for some companies, experts say. Read more...

 

FTA outlines new procedure for submitting tax returns

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The Federal Tax Authority (FTA) has outlined a simple four-step online procedure allowing businesses to easily submit their tax returns via the e-services portal on the FTA website. Read more...

 

 

No VAT on realty transactions in designated zones in UAE

altSale and lease of both commercial and residential properties in designated zones will be outside the scope of VAT, according to the latest clarification issued by the Federal Tax Authority (FTA) at a meeting with a group of tax consultants in the UAE. Read more...

 

 

Constructions firms should be wary of VAT-related cashflow issues

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Suppliers need to take proactive measures to protect themselves from cashflow issues in the wake of the implementation of value-added tax (VAT), according to a UAE-based construction expert. Read more...

 

 

Some GCC countries could double VAT to 10%: Report

altSome GCC countries could double VAT rate to 10 per cent mainly due to discrepancy between five per cent statutory and effective tax rate, says a new study released on Sunday. Read more...

 

 

No VAT on exports: Saudi tax authority

altThe General Authority of Zakat and Tax (GAZT) clarified that Saudi Arabian exports are zero-rated under the VAT Law and Implementing Regulations. Read more...

 

 

Free zone: no legal basis for companies refusing to work with freelancers over VAT 

Businesses have no legal basis to refuse to work with freelancers that are not registered for VAT.

That was the assessment of one free zone as it responded to reports that companies are telling self-employed individuals they won't work with them unless they have a VAT registration number. Read more...

 

VAT in UAE: New online calculator to check authenticity of tax invoice

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The Federal Tax Authority (FTA) on Tuesday launched a Tax Registration Number (TRN) verification service on its website, where consumers can check the authenticity of tax invoices and ensure that the merchants and service providers issuing them are registered with the FTA. Read more...

 

Revealed: tens of thousands of companies yet to register for VAT

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About 260,000 companies have registered for VAT but tens of thousands of others are yet to do so - weeks after the deadline passed. Read more...

 

 

 

Ask for tax registration number, not tax certificate

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The UAE's Federal Tax Authority (FTA) on Saturday said that businesses are not required to present a tax certificate in order to conduct their activities and can simply use their tax registration number (TRN). Read more...

 
 

How VAT affects your insurance spending

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As you are aware, value-added tax (VAT) implemented in the UAE on January 1. This means, as a consumer, the majority of your purchases have five per cent added to the price. Read more...

 

 

Online shopping subject to VAT: Federal TAX Authority 

altThe Federal Tax Authority (FTA) has confirmed that all purchases made through online shopping portals are subject to the same 5 per cent Value Added Tax (VAT) as any other purchase made through traditional outlets if the products purchased online are received within the UAE. Read more...

 

 

Federal Tax Authority extends deadline for filing VAT returns for some companies

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The Federal Tax Authority (FTA) said yesterday it has extended the period for filing VAT returns for some companies, a move that will give those struggling with the implementation of the 5 per cent levy time to correctly comply with procedures. Read more...

 
 
Ask the Law: Bounced cheques and related laws in the UAE

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Here's what we learnt about bounced cheques in the UAE from readers' questions in Ask the Law. Read more...

 

 

 

Abu Dhabi issues 27 fines to businesses misusing VAT 

Inspectors in Abu Dhabi have issued 27 fines, reaching a maximum of Dh10,000, to businesses that overcharged customers on the pretext of value-added tax (VAT). Read more...

 

How VAT affects car owners and sellers in the UAE

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How much you pay to buy a new or second-hand car depends on whether you are buying from an agency, dealer or individual, according to a new guide for drivers released by ServiceMarket.com and CarSwitch.com. Read more...

 

 

VAT: 5% is not open to  interpretation in the UAE 
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In the weeks since value-added tax (VAT) was officially implemented in the UAE, questions have swirled about the intricacies of its implementation, with many residents left puzzled about their receipts and asking the question: when is five percent not five percent? Read more...

 

 

FTA announces list of Designated Zones in the UAE 

altThe UAE’s Cabinet on Wednesday finalised designated free zones for application the Federal tax-law No (8) relating to Value Added Tax [VAT]. An unofficial translation of the Cabinet decision lists 20 free zones across the country as designated free zones under special treatment under VAT law. Read more...

 

 

10 important things you need to know about VAT in UAE

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Here's a rundown of what you need to know about VAT - from what products and services are subject to it to knowing whether companies are trying to pull a fast one on youRead more...

 

 

VAT in UAE offers new opportunity for banks
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The introduction of value-added tax (VAT) in 2018 would mark the beginning of a new era in the economic diversification of the UAE. In the past four decades, the UAE has seen a massive economic transformation from an oil based economy to a well-diversified economy compared to its peers. The GDP of the country went up from a mere $14 billion in 1975 to over $380 billion supported by the growth in oil and non-oil sectors. As a result of the diversification efforts initiated two decades back, oil sector now just accounts for around 30 per cent of the total GDP. Read more...

 

UAE probes first VAT-related complaints after tax launch

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The Department of Economic Development (DED) has revealed that it received five complaints on Monday regarding VAT violations on the first day of its implementation in the UAE. The authority said it immediately followed up with the affected consumers either directly or via its complaint system linked to its call centre in Abu Dhabi (800555). Read more...

 

Is your grocery illegally charging VAT? Find out here

The invoice should include the seller's tax registration number (TRN) and the amount of VAT charged. No TRN, no VAT. Read more...

 

UAE Ministry of Finance approves first purchase invoice with VAT

altFollowing its commitment to the UAE's various government finance procedures, laws and regulations; the Ministry of Finance (MoF) has today issued the first VAT inclusive purchase order, and approved the first VAT invoice on its federal financial system. In light of such activity MOF became the first federal entity to implement tax procedures and issue a tax invoice in 2018Read more...

 
TRN a must for charging VAT from end users
 
There are some traders who are charging value-added tax (VAT) without showing the Tax Registration Number (TRN) on the receipt. A tax invoice must include the name, address, and TRN of the registrant making the supply. An invoice must have a sequential tax invoice number or a unique number and date of issue, which enables identification of the tax invoice and the order of the invoice in any sequence. Read more...
 
 
Small corner shops must comply with VAT law: Al Bustani 

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Khalid Al Bustani, Director General of the Federal Tax Authority (FTA), said that all retailers must update all their prices in time for the VAT kick off on January 1. Read more... 

 

 
Airline tickets, cargo to be zero-rated under VAT

According to article 33 of the executive regulations on VAT, transporting passengers in and out of the country is subject to zero tax rates, meaning it’s not just your airfares that won’t be taxed; cargo is also zero-rated. Read more...

 
VAT implementation in Oman postponed until 2019

Muscat: Oman’s Ministry of Finance has postponed the decision to implementation of Value-Added Tax (VAT) until 2019. The application of the selective tax on certain products will start by the middle of 2018, the ministry said.No further details have been given about the postponement by the Omani authorities. Read more...

 
Is VAT applicable on mobile bills? UAE ministry clarifies 

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The Telecom Regulatory Authority of the UAE on Monday clarified that the residents using post-paid service will have to pay five per cent VAT on the total amount of the package they are using. As for recharge cards, the tax will not be applied to the face value of the recharge; but on the prices of the services used by the user from the recharged amount. Read more... 

 

Multiple stores 'change prices ahead of VAT' 

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The head of the Federal Tax Authority has warned retailers against raising prices ahead of the official launch of the Value Added Tax on January 1. Read more...

 
 
 
Family businesses expected to face VAT compliance challenges

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Family businesses across the GCC are likely to face tax compliance challenges as Value Added Tax (VAT) is being introduced in the region starting with the UAE and Saudi Arabia from January 1, 2018. Read more...

 
 
Will water and electricity be taxed? 

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The Federal Tax Authority has confirmed that both water and electricity will be taxed at 5 per cent from January 1, 2018, according to the recently released executive regulations. Read more...

 
 
Do you buy gold for investment or bling?

From January 1, for UAE’s gold shoppers, the choice is simple enough. Are they going into a jewellery store with an investment bent of mind — for a gold bar — or should still opt for a necklace set or bangles? Read more...

 
Will my children's education be taxed under VAT?
 
There has been some confusion since August 2017 as to whether or not private education would be subject to a 5 per cent rate hike on January 1, 2018. Read more...
 
 
All you need to know about registering for VAT? 

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According to the executive regulations on value added tax (VAT) published last week, the mandatory registration threshold is Dh375,000. Read more...

 
 
 
Will board members have to pay tax on their fees? 

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Board members of large companies will be required to pay a value added tax of five per cent on the fees they are given for their services, according to two taxation lawyers and experts. Read more...

 
 
What are 'zero rated' goods and services? 

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What is the difference between 'zero rated' and 'tax exempt' good or service. Zero-rated and exempt refers to the preferential status the government gives some essential goods and services, which means their sale is not taxed. Read more...

 
 
No VAT on Salik, RTA clarifies 

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In a huge relief to UAE residents, the Roads and Transport Authority has clarified that value-added tax (VAT) will not be levied on Salik (toll gates) or public transport facilities. Read more...

 
 
Federal Tax Authority Announces Supplies Subject to VAT, Identifies Exempt Supplies

The Federal Tax Authority (FTA) has announced the supplies that will be subject to Value Added Tax (VAT) as of January 1, 2018, revealing selected sectors that will be assigned zero-rated tax, such as education, healthcare, oil and gas, transportation and real estate. Read more...

 
VAT in UAE: Prices displayed must be the price at the till

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The price seen on the shelf should be the price paid at the till, according to new value-added tax (VAT) guidelines set out by the UAE’s finance ministry. Read more...

 
 
 
The Business of applying VAT on free zone operations

As the value-added tax (VAT) regime comes into effects, an important piece of the puzzle was made public recently, which is the Cabinet’s Decision No. 52 (the “Decision”) on Executive Regulations of the Federal Law-Decree No. (8) on Value Added Tax (the “Tax Law”). Read more...

 
Why is zero so important in the VAT for residental freehold?  

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In the residential freehold space, all transactions involving a developer and a buyer have been set at 0 per cent. The other big plus for residents is the fact that even rental agreements on homes come under the 0 per cent banner. Read more...

 
 
Guide: How VAT will impact education sector in UAE  

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Implemented across more than 150 countries worldwide, the UAE's 5% VAT is among the lowest in the world. Read more...

 
 
 
Brokers no longer allowed to sign rental contracts

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Brokers legally appointed to manage property of landlords based abroad are no longer allowed to sign unified lease contracts to get an Ejari. Read more...

 
 
 
5% VAT on ATM withdrawals from other banks? Read this

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UAE customers will not be charged five per cent VAT on amount withdrawn from ATMs of banks other than their own bank - but only on the Dh2 fee charged by the banks, according to tax experts.. Read more...

 
 
Economics 101: Will VAT diversify UAE government revenues?

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The UAE is preparing to launch VAT in 2018. The headline motivation - which has earned the endorsement of many leading global organisations, such as the IMF - is that the tax will diversify public revenues.  Read more...

 
 
Exports between UAE and Saudi Arabia will be subject to VAT at 5% rate-experts

Exporters based in Saudi Arabia and the United Arab Emirates will be required to pay value-added tax (VAT) on goods transported between the two Gulf neighbours from next year, with the tax collected in the country where the products are exported to, according to taxation experts and business executives. Read more...

 
UAE property firms must keep financial records for 15 years 

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The Federal Tax Authority on Tuesday issued Executive Regulations for value-added tax (VAT), which stated that real estate firms would have to maintain their books for 15 years. Read more...

 
 
VAT can prompt UAE residential developers to get more generous

Come 2018, property buyers can expect UAE developers to turn even more generous with their sales incentives, especially on the post-handover payment plansRead more...

 
Move on bounced cheques to boost investor confidence

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The decision by Dubai Courts to issue fines instead of jail sentences for bounced cheques will help instill confidence among the business community and ensure that those in debt can resolve their issues, Hamad Buamim, president and CEO of Dubai Chamber of Commerce and Industry, said on Monday.  Read more...

 

Two VAT-specific deadlines for owners of commercial properties

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One, they will need to register with the Federal Tax Authority if the sales or rental proceeds exceeded Dh375,000 in the previous 12 months. And, two, if the owners believe they are likely to generate more than Dh375,000 over the next 30 days. Read more...

 
 
 
Saudi Arabia to impose 5% VAT on fuel from January 1

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The standard Value Added Tax (VAT) of five per cent will be applied to purchasing petrol, the General Authority of Zakat and Tax (GAZT) has said. Read more...

 
 
 
If VAT induces a fear of buying, try leasing a car

If the cost of buying a new car is a worry, then give leasing it a shot. UAE dealerships are all set to upgrade – or update - their financial leasing services to try and ease the reluctance of buyers over the higher costs they will have to bear after VAT’s implementation. Read more...

 

UAE tourists will be able to reclaim VAT, says Federal Tax Authority

Tourists to the UAE will be able to claim back the VAT on purchases they make whilst visiting the country, according to a draft executive regulation released by the Federal Tax Authority (FTA) on Wednesday. Read more...

 

The Cost of VAT for Influencers

For the UAE’s freelance professionals — including all those social media influencers pulling in fat cheques — there could be a cost associated with the VAT. And no, it’s not confined to what they have to shell out for their next set of designer goods purchasesRead more...

 
Food to be taxed, whilst health care and education avoid VAT hike

The UAE government offered on Wednesday its most comprehensive insight in to the country’s value added tax law to date, providing a number of clarifications on goods and services such as education and health careRead more...

 

UAE's VAT on gold jewellery will be on the entire piece

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The VAT (value-added tax) on gold jewellery will likely apply to the entire piece, which effectively means an additional payout of Dh7-Dh8 a gram at today’s prices, according to industry sources. But on gold bars, deemed as investible assets, no such tax will apply. (There will also be no duty on loose diamonds.). Read more...

 
VAT to increase costs for Gulf real estate investors, says CFA survey

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The cost of real estate investment in the region is likely to climb on the back of VAT introduced across the Gulf from next year, a survey of local investment professionals found. Read more...

 
 
 
VAT in the UAE: 10 things to know

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The Federal Tax Authority (FTA) has announced a list of the top ten things businesses must know before registering for VAT, in order to raise awareness within the business community, as well as society at large. Read more...

 
 
UAE plans new law to relax foreign investments rules

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A new law that exempts foreign firms from giving local partners 51 percent of companies set up in the UAE is set to come into force next year, according to Sultan bin Saeed al Mansoori, the country's Minister of Economy. Read more...

 

5% VAT to create 5,000 jobs upon introduction on Jan 1

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Paul Drum, head of policy at CPA Australia and an expert in tax law, has said that it is anticipated that around 5,000 finance and accounting jobs will be created within the GCC region with the introduction of value-added tax (VAT). 

 

Passengers at Dubai airports to pay excise tax

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Dubai Duty Free (DDF) confirmed on Monday that both departing and arriving passengers at Dubai’s airports will pay an excise tax on carbonated drinks and energy drinks in line with the UAE’s implementation of the tax.

 

Zero rating and exemptions available to a number of goods

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Zero-rating of value added tax applies when goods and services are being exported to outside a VAT-implementing GCC state, as well as to international transportation of passengers or goods including a transfer starting or ending in the UAE or passing through its territory

 

Who will bear the burden of VAT in the UAE?

altLess than three months to go until VAT is introduced in the UAE and the sense is that most businesses remain woefully unprepared, and the effect on the wider economy remains unclear. The UAE government is anticipating significant – and much needed – revenues but who is likely to pay the economic cost of VAT?

 

Saudi businesses with revenue exceeding SAR375,000 to pay VAT from Jan

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Saudi Arabia’s General Authority for Zakat and Tax has announced that private sector companies with annual revenue exceeding SAR375,000 ($100,000) will pay monthly value added tax from January 2018, according to reports.

 

VAT and its implications in the GCC

altWith the new economic reform of adding value-added tax (VAT) in the Gulf Cooperation Council (GCC) coming into effect in January 2018, many are concerned about its implications. 

 

Federal Tax Authority clarifies price-setting mechanism for Excise Tax

altFollowing the introduction of Excise Tax in the UAE on October 1, the Federal Tax Authority (FTA) has clarified that the Excise Goods Price List that is downloadable from its website is a reference for tax calculation only, and not for setting retail prices.

 

UAE Cabinet Approves Decisions No. (39) and (40) for 2017 on Federal Tax Authority's Service Fees, Administrative Fines

altThe UAE Council of Ministers has adopted Cabinet Decision No. (39) of 2017 on Fees for Services Provided by the Federal Tax Authority and Cabinet Resolution No. (40) of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.

 

altThe planned Excise Tax is set to go into effect at the beginning of October 2017, announced the Federal Tax Authority (FTA) at a press conference in Dubai today (Wednesday, September 27, 2017). 

 

President issues VAT Decree Law

The UAE will mark the beginning of new era in its 46-year history on Sunday as it starts implementing excise tax, exactly three months ahead of the launch of value added tax (VAT), another landmark region-wide tax initiative. 

 

Federal Tax Authority debuts website to help businesses navigate UAE's new Tax system

altThe Federal Tax Authority (FTA) has launched its website, providing businesses and consumers with a wealth of information on the upcoming introduction of excise tax and VAT in the UAE.  

 

UAE President issues Excise Decree-Law targetting select 'harmful' products 

President issues new Tax Procedures Law

UAE Federal National Council passes draft on tax-related law

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