Category: VAT

When doing business globally it is important to be aware of factors that can affect smooth activity. One of the biggest factors in that regard is taxation on those activities. Taxation is, broadly speaking, a levy or cost imposed by a government on private entities (such as people or businesses) in exchange for permission to conduct business. Taxes are a cornerstone that supports government finances worldwide. Some countries tax less than others according to their needs and requirements.

Value Added Tax is an indirect, transaction-based tax that is levied at every stage of the supply chain. Businesses whose taxable supplies and imports from abroad exceed the mandatory registration threshold of AED 375,000 are required to register. The taxable person must submit VAT returns to the Federal Tax Authority on a periodic basis (every three months or a shorter period if the authority so decides) within 28 days from the end of the tax period in accordance with the procedures specified in the tax legislation.

E-Commerce is growing in the UAE and with it the need to understand and adhere to all regulations surrounding VAT. If you are looking to start an e-commerce business in the UAE, you first need to register and get a valid VAT number. Once you have a VAT number, you will be legally obligated to collect and remit VAT on all the taxable goods you sell in the UAE. This is where AM Audit comes in. 

A TRN number check of a firm is mainly used to confirm the validity of VAT registration. If you intend to find out whether a business entity has a Tax Registration Number in the UAE, all that you need to do is search for the services of a tax representative in the UAE. A tax agent can help you in finding whether a business entity that you are about to deal with has a TRN number or not. With help from a tax agent, you’ll be in a good position to know whether to commence business with your potential firm or not.

VAT refund facility at self-service kiosks The Federal Tax Authority (FTA) has organized field tours to the ‘Self-Service Kiosks’ in Dubai International Airport-part of the Value Added Tax (VAT) Refund Scheme for tourists – to ensure The steadiness with the FTA’s strategy to provide services that meet taxpayers’ aspirations, and its commitment to abiding by Cabinet Decision No. (41) of 2018 on Introducing the Tax Refunds for Tourists Schr.

The FTA asserted that the Cabinet Decision would boost the UAE’s global business competitiveness by establishing a tax legislation environment that encourages self-compliance and offers significant support to the national economy. The Decision outlines 16 types of administrative penalties that have either been reduced or had the method of calculation amended. The amendments include administrative violations related to the application of Federal Law No. 7 of 2017 on Tax Procedures, Federal Decree-Law No. 7 of 2017 on Excise Tax, and Federal Decree-Law No. 8 of 2017 on Value Added Tax.

FTA recently Issued VAT Public Clarification on Mobile Phones, Airtime, and Data Packages Made Available to Employees for Business Use:
A business is entitled to recover input tax in respect of Phones, Airtime, and Packages acquired if these costs are incurred to make taxable supplies and the following requirements are met

FTA has issued cabinet decision No. 88 of 2021 to update the provisions related to specific Zones stipulated in Article 51 of the executive regulation of Federal Decree-law No. 8 of 2017 on value added tax by inserting additional sub-clauses to clause five and adding a new clause 7 with an effective date of 30 October 2021. These modifications clarify components of products and services within the same specific zone, as well as the movement of items from a designated area to within the state.

A tax group is a group of companies that are taxed as collectively. Under the U.A.E.’s tax laws, companies can form a group or join an existing group to file the single tax return for all the members of the group.

Value Added Tax (VAT) is the tax added at every stage of value addition and concerned person is only responsible to pay the VAT on value addition that he will collect from the customer.