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Tax Consultants & Bookkeepers in the UAE

FTA Press Releases

3 years of achievements since the introduction of VAT

During 2020, the Federal Tax Authority has maintained ever-increasing performance rates and has continued to implement its development projects across all areas of its work in accordance with its target plans.

 His Excellency Khalid Ali Al-Bustani, Director General of the Federal Tax Authority - in a press release issued today marking the third anniversary of VAT application -  has confirmed that for the third consecutive year, the FTA continued to achieve rising performance rates while continuing its efforts to manage, collect, and implement federal taxes with procedures and mechanisms distinguished by their ease of use, transparency, and clarity through its modern electronic systems, pointing to the high compliance rates among taxable persons in light of the greatly increased awareness in business sectors, and the ease and flexibility of the procedures.

 His Excellency said: “During 2020, the Authority maintained increased results, with preliminary statistics showing that the number of registrants for VAT increased to 332.39 thousand registrants of business and Tax Groups and its members, compared to about 312,000 registrants at the end of 2019 and 296,000 registrants at the end of 2018 (the first year of VAT).” Read more..

FTA to ban the sale (supply), transport, storage or possession of water pipe tobacco products and electrically heated cigarettes that are not marked with Digital Tax Stamps with effect from 1st January 2021

The Federal Tax Authority, FTA, has confirmed that as of 1st January 2021, it will not be permitted to sell (supply), transport, store or possess any type of water pipe tobacco or electrically heated cigarettes in the UAE unless they bear the Digital Tax Stamp (DTS).

As per Cabinet Decision No. (33) of 2019,  the Authority urged those concerned and affected by the decision to comply, including local suppliers and manufacturers, to ensure that their water pipe tobacco products and electrically heated cigarettes carry a tax stamp to avoid the violations mentioned in the Cabinet Decision No. (33) of 2019 on administrative penalties for violations of procedures related to the implementation of marking excise goods. Read more..

UAE Federal Tax Authority conducts its second virtual workshop for 225 tax agents on tax treatment of e-commerce

The Federal Tax Authority(“FTA”) confirmed that several general Value Added Tax (VAT) rules apply to e-commerce transactions, in addition to a number of special VAT rules specifically applied to e-commerce transactions. The FTA outlined that e-commerce generally refers to the supplies of goods and services that take place on digital platforms, where the supply of goods and services are obtained electronically, including via computers or mobile phones for purchase from websites or electronic applications.

This announcement was made during its second virtual workshop for accredited tax agents, on the tax treatment applied to the supplies of goods and services made through electronic means, such as the internet and similar electronic platforms. Read more..

FTA Board of Directors hold 13th Meeting

The FTA Board of Directors, chaired by His Highness Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and Chairman of the Authority’s Board of Directors, approved a number of executive decisions related to the Authority’s operational activities and organizational and administrative policies during its thirteenth meeting.

The Authority’s financial statements for the period covering the first quarter ending on March 31st, and the period ending on June 30th, 2020, were approved. This was in accordance with the international accounting standards related to reviewing the quarterly financial statements. During the virtual meeting, the Board reviewed indicators of FTA’s performance adopted by the Authority in all areas relevant to its activities during the first nine months of 2020, including registration systems, filing returns, tax refunds for groups legally qualified to recover, such as UAE nationals’ homebuilders refund, tax refunds for tourists and for foreign business visitors. Read more..

UAE Federal Tax Authority conducts workshop for 213 approved tax agents to review procedures for recovering input tax

The Federal Tax Authority has held an online virtual workshop for accredited tax agents, which addressed the timeframe for input tax recovery and redemption procedures.

During the workshop, which was held with the participation of 213 accredited tax agents and a number of Authority officials, participants' inquiries were answered, clarifying the criteria and procedures for recovering input tax incurred for specific expenses. Such expenses included those related to the COVID-19 pandemic, marketing and entertainment expenses, vehicle expenses, and events beyond taxation control.

The Authority clarified that with regard to the expenses associated with COVID-19, such as the sterilizing of workplaces and the testing of employees, are considered general expenses. Input tax is recoverable in the event that the supplies and services made by the business are themselves taxable. In the event that the business is making taxable supplies only, the input tax is fully refundable. However, in the event that the business is making taxable and tax-exempt supplies, the input tax will be partially refundable.  The FTA also indicated that input tax cannot be recovered on the expenses of testing employees’ families unless the employee bears the cost. Read more..

FTA calls on Registered Businesses to take benefit of streamlined Tax payment procedure

The Federal Tax Authority (FTA) has reported an increase in tax payments made using the Generated International Bank Account Number (GIBAN) via the UAE Fund Transfer System (UAEFTS), which allows users to pay taxes through branches of 77 banks, exchange offices, and financial firms in the UAE.

In a press statement issued today, the Authority called on businesses registered in the tax system to use their GIBAN on UAEFTS to take advantage of its many benefits, such as transferring funds online from their bank accounts to the FTA. This eliminates the need for cash and helps prevent the spread of the novel Coronavirus (COVID-19).

GIBAN is a special International Bank Account Number (IBAN) that is issued by the FTA for each tax registrant and used for transferring funds from various financial institutions in the UAE and abroad, the Federal Tax Authority explained. This method can be used to pay Value Added Tax (VAT), Excise Tax, and any administrative penalties due. Read more..

FTA issues directive on alternative deadline to file tax returns

In light of its commitment to supporting VAT registrants and the unprecedented intensive precautionary measures undertaken by the UAE to curb the spread of the novel Coronavirus (COVID-19) imposing 24-hour restrictions on the movement of individuals and vehicles implemented in certain areas of the UAE, which coincided with deadlines for filing VAT Returns, the Federal Tax Authority (FTA) issued a directive on an exceptional basis providing an alternative date of 28 May 2020 for the deadline of submitting VAT returns and the payment of due tax for the Tax Period ended 31 March 2020, enabling Taxable Persons to meet their tax obligations without facing any difficulties.

In a press statement, the FTA confirmed that, as per the directive, VAT registrants who have monthly tax periods must submit their returns, and settle the payable tax for the tax period from 1 to 31 March, 2020, no later than Thursday, 28 May 2020. Read more..

Federal Tax Authority urges all businesses registered in the tax system to use its official channels and not respond to electronic messages that could be fraudulent

The Federal Tax Authority (FTA) has called on all businesses registered in the tax system to maintain the confidentiality of their information to avoid the risk of fraud. 

Urging vigilance and caution, the Authority warned that it is imperative that businesses do not disclose to any third party their private financial or accounting information, in order to avoid exposure to financial fraud that has become a global phenomenon. It added that preventing financial abuse requires the cooperation of all parties of financial transactions, especially customers. Read more...

Federal Tax Authority Announces Exceptional Extension of Tax Period for Excise Tax Registrants in Light of the 24-Hour Movement Restriction in Some Areas

The Federal Tax Authority (FTA) has reiterated its full commitment to supporting taxpayers and enabling them to fulfil their tax obligations during these exceptional times, as authorities ramp up their precautionary efforts to prevent the spread of the novel Coronavirus (COVID-19).

With that in mind, the FTA issued a decision to extend the Tax Period, which began on March 1, 2020, for businesses registered for Excise Tax for one month on an exceptional basis. The Period now covers the months of March and April 2020, and ends on April 30, 2020, allowing registered businesses sufficient time to fulfil their tax obligations before the deadline. The FTA noted that Excise Tax registrants are required to file two separate Tax Returns, one for March and one for April 2020, and settle the total amount due for the two months no later than Sunday, May 17, 2020. 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...

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 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...

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...

H.H.Hamdan Bin Rashid Issues Decision on Tax Refunds for Tourists Scheme allowing for refund claims to be made as of next Sunday 

His Highness Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance, and Chairman of the Board of the Federal Tax Authority (FTA), issued the Decision No. (2) of 2018 on the Tax Refunds for Tourists Scheme, setting out the implementation dates for phases one and two, the procedures for the verification of tourists’ eligibility for the tax refund, the fees charged for refunds and their application, the maximum cash recovery, the minimum value of purchases subject to the refund, and the goods excluded from the refund. Read more...

Federal Tax Authority Holds Meeting on 'Implementation of Indirect Taxes in the UAE'

In the presence of H.E. Jaber Mohammed Ghanem Al Suwaidi, General Director of the Crown Prince Court of Abu Dhabi, and with strong participation from entities concerned with the implementation of the tax system, the Federal Tax Authority (FTA) Director General His Excellency Khalid Ali Al Bustani delivered a comprehensive presentation on “The Implementation of Indirect Tax in the UAE ” at Majlis Al Bateen in Abu Dhabi.  Read more...

Federal Tax Authority: Tourists Can Begin Reclaiming VAT as of November 18 

The Federal Tax Authority (FTA) has announced that Tax Refund for Tourists Scheme goes into effect on November 18, allowing eligible tourists to request refunds of the Value Added Tax (VAT) incurred on their purchases. Read more...

Federal Tax Authority Announces Positive Results for First Year of Excise Tax Implementation

The Federal Tax Authority (FTA) has revealed that compliance with Tax Returns requirements for Excise Tax one year after its introduction in the UAE has amounted to 97.7% of registered businesses – one of the highest rates in the world – while the total number of registrants reached 715 registrants. Read more...

Federal Tax Authority Simplifies VAT Refund Procedures for UAE Nationals Building New Residences

His Excellency 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...

Federal Tax Authority Determines Tax Treatment for Compensation-Type Payments

The Federal Tax Authority (FTA) has issued a public clarification regarding tax treatment of compensation-type payments, noting that Value Added Tax (VAT) is imposed on supplies of goods and services and if any payment does not relate to a supply of goods or services, then the payment is not subject to VAT. Read more...

Federal Tax Authority Urges Registered Businesses to Retain Tax Registration Numbers and Passwords to Meet Tax Obligations

The Federal Tax Authority (FTA) has urged all registered businesses to hold on to their Tax Registration Number (TRN), as well as the email address and password used to sign up for the system, without which they would not be able to undertake any tax-related transactions on the e-Services portal. 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...

Federal Tax Authority Introduces Retailers in Northern Emirates to Simplified Procedure for Registering in the Tax Refunds for Tourists Scheme

The Federal Tax Authority (FTA) held an awareness session in the Emirate of Ajman for retailers and other representatives from the private sector in all Northern Emirates in collaboration with the chambers of commerce, introducing them to the simplified online procedures for registering in the Tax Refunds for Tourists Scheme, which allows eligible visitors to recover the Value Added Tax (VAT) they incurred on their purchases. 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...

Federal Tax Authority Urges All Retail Companies to Register and Connect to the Digital System of Its "Tax Refund Scheme for Tourists"

The Federal Tax Authority (FTA) has invited retailers, outlets and shops registered for Value Added Tax (VAT) to register in the digital system of the Tax Refund Scheme for Tourists, which will come into effect as of the fourth quarter of this year. Read more...

Federal Tax Authority: Digital Tax Stamp Scheme for Tobacco Establishes Accurate and Effective Control System

The Federal Tax Authority (FTA) 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...

Federal Tax Authority Announces Start of Retailer Registration for the Tourists Refund Scheme

Following the announcement of the implementation of the Tourist Refund Scheme FTA has taken a significant step forward and registration process for retailers is due to open next week. The procedure involves linking shops and other points of sale to establish the operational capacity of the new system, which comes into effect in last quarter this year. Read more...