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Tax Consultants & Bookkeepers in the UAE

        

Latest News

FTA intensifies its efforts by increasing inspection visits 104% in 6 months

The Federal Tax Authority (FTA) significantly expanded its efforts in collaboration with various government departments, ministries and authorities to protect consumers from non-compliant products, combat tax evasion, and ensure compliance with tax legislations and procedures.

During the first half of this year, the FTA carried out 9,948 inspection visits in local markets across the country in collaboration with the Ministry of Economy, the Federal Authority for Identity, Citizenship, Customs, and Port Security and various departments of Economic Development across the country.

Inspections conducted in the first half of 2022 increased by 104 percent compared to 4,878 inspections conducted in 2021 in the same period.

In a press statement issued today, the Authority confirmed that the campaigns come within the framework of its keenness to strengthen market control through intensified market inspections across all the emirates.  The FTA’s plans aim to ensure laws, legislation and tax procedures are followed to guarantee the protection of the national economy, provide the highest levels of protection for consumers, combat commercial fraud and prevent the trade of inferior and counterfeit products that harm public health and the national economy. Read more..

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

A64) Can my start-up begin trading if it is not registered?

Businesses not registered for VAT, and who are importing goods for resale in the UAE, will pay the tax at the point of entry, which they cannot reclaim. They will then sell these goods to customers without adding VAT to the sales price.

You are selling to consumers unlikely to be VAT registered, so while you will have to pay input VAT on the import of these goods — which you cannot reclaim — you will not need to charge output VAT on the sale of the product.

You can start trading immediately but must ensure there is no mention of VAT on your website, pricing or customer receipts. Once you reach the mandatory registration threshold and register, you will start charging the tax to your customers making sure to update your website to reflect your prices are now inclusive of 5 per cent VAT. 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..

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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