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Tax Consultants & Bookkeepers in the UAE

        

Latest News

RECONSIDERATION section updated on FTA Portal

The RECONSIDERATION section under the e-services Dashboard on the UAE FTA portal has been renamed GRIEVANCE/ INSTALMENT.

Additionally, a tab for Penalty Instalment Plan has been added as an option under the Grievance/Instalment section.
This addition of the Penalty Instalment Plan tab is in line with Cabinet Decision no. 105 of 2021 issued on 28 December 2021, that came into effect on 1 March 2022. This Cabinet Decision covers the conditions, procedures and timelines related to the Instalment Plan and Waiver of Administrative Penalties.
Taxable persons who have been subject to Administrative Penalties can benefit from these changes and request an Instalment Plan or Waiver of Penalties, subject to fulfilment of the stipulated conditions.

Corporate Tax News and F.A.Q's

D14) Will the UAE Corporate Tax regime allow prior year losses to reduce future taxable income?

The UAE Corporate Tax regime will allow a business to use losses incurred (as from the UAE Corporate Tax effective date) to offset taxable income in subsequent financial periods

A loss for Corporate Tax purposes (tax loss) would arise when the total deductions the businesses can claim are greater than the total income for the relevant financial period.

Expert VAT Opinions

A31) What details do I need to include on a tax invoice?

VAT legislation prescribes that whenever you make a taxable supply you must issue a tax invoice. Whether you need to issue a full invoice, or a simplified version depends on whether your customer is tax registered and the invoice value. However, you have an obligation to issue and deliver an invoice in all circumstances, so your customer telling you they don’t want one is irrelevant. Read more…

FTA Press Releases

The Federal Tax Authority launches its Youth Council to develop a generation of future leaders

The Federal Tax Authority (FTA) has announced the launch of its Youth Council, an initiative launched in alignment with the Federal Youth Authority. The new forum aims to support and empower youth while simultaneously enabling the FTA to benefit from the council members' ideas and vision.

The new council will fulfil several key objectives, including adopting its members’ suggestions to continuously improve work mechanisms, preparing a new generation of future leaders, providing a platform for innoVATion, and linking its outputs with the FTA senior management for use in implementing the Authority’s future strategies.

His Excellency Khalid Ali Al Bustani, Director General of the FTA, stressed that this important step comes within the framework of government directions to enhance the empowerment of young people in various sectors and facilitate their role in public, community and business life.

He said that the establishment of the council would play an instrumental role in investing the energies and talents of young people, with youth the builders of both the present and a promising bright future, thereby enabling the UAE to cement its position as one of the best countries in the world in all areas. Read more..

Federal Tax Authority Confirms ‘Systems for VAT Refund Scheme for Tourists Are Ready’ for Steady Growth in Tourist Footfall

The Federal Tax Authority (FTA) confirmed that the VAT Refund Scheme for Tourists is witnessing continuous development, advancement, and expansion by introducing more facilities to streamline and speed up the refund process for tourists eligible for a tax refund.

The Authority noted that the system witnessed a significant increase in demand recently, as travel restrictions are gradually relaxed. The tourism sector in the UAE started showing signs of recovery from the COVID-19 pandemic, driven by mega event Expo 2020 Dubai and the government’s efforts in supporting the travel industry.

During the Global Tourism Forum Pre – Post the COVID-19 Pandemic – which was held at Expo 2020 Dubai and organised by the Federal Tax Authority in collaboration with Planet (FTA’s authorised VAT Refund Scheme for Tourists operator) – the Authority showcased the pandemic’s implications on shopping patterns and purchasing consumers’ behaviours along with economic indicators of the recovery of the tourism sector globally and locally. Read more..

The FTA encourages registrants to take advantage of penalty redetermination

The Federal Tax Authority has called on tax registrants in the UAE to benefit from the penalty redetermination scheme introduced by Cabinet Decision No. 49 of 2021 on Amending Some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE, which will be effective from 28th June 2021.

In a press release issued today, the Authority stressed the three conditions that must be met in order for tax registrants to benefit from the re-determination of unpaid administrative penalties imposed prior to 28 June 2021, to equal 30% of the total unpaid penalties.

The first condition is that the administrative penalty must have been imposed under Cabinet Decision No. 40 of 2017 before 28th June 2021, and some or all of it remains outstanding.

The second condition is that the tax registrant settles all payable tax by 31st December, 2021, so that there is no outstanding tax payable by the end of 2021. Finally, the third condition requires tax registrants to settle 30% of any administrative penalties payable and unsettled by 28th June, 2021, on or before 31st December 2021. 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.

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