The top 8 list of VAT fines and penalties levied by FTA
Ever since the introduction of Value Added Tax (VAT) on 1 January 2018 in UAE, companies need to mandatorily comply with stipulated guidelines and regulations to abide by the VAT law. The mandates are related to VAT registration, erroneous submissions, returns filing and other compliances.
Businesses must be aware of all the scope of violations of UAE VAT Law in order to avoid non-compliance issues and hefty fines.
We give you a brief orientation on the types of violations possible under the VAT law and the associated penalties imposed by FTA for non-adherence.
Designated Non-financial Businesses and Professionals (DNFBP) role in anti-money laundering (AML)
The UAE has the most attractive trade regimes in the Middle East region, making it a global hub. As a committed member of the International Financial Action Task Force (FATF), the UAE has displayed readiness for anti-money laundering (AML) and counter financing of terrorism (CFT). The UAE taken proactive steps in an effort to monitor the illegal funds and align with international best practices.
Strict Compliance to ESR requirements in UAE
The UAE adopted new Economic Substance Regulations in Cabinet Resolution No. 31 of 2019. These regulations iterate that a company engaged in relevant activities must have sufficient economic substance in the territory to access the territory’s tax regime. Companies in UAE need to comply with the Economic Substance regulations (ESR) in UAE, if not they have to bear heavy fines for their failure to do so.
A New Step in Excise Tax System: Digital Tax Stamp Scheme
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.
Know more about the Digital Tax Stamp Scheme.
VATP023 relating to Zero-rating of Certain Medical Equipment
UAE’s Federal Tax Authority (FTA) had published a new public clarification (VAT P023) confirming the zero-rating of VAT on personal protective equipment, PPE, relating to COVID-19. The zero-rating is only for qualifying supplies between 1 September 2020 and 28 February 2021.
Published by : Federal Tax Authority
How VAT works in Free Zones (UAE)?
Aurifer and Thomson Reuters have partnered on this whitepaper to discuss about Free Zones in the UAE, the impact of VAT on companies working within these zones, and how you should better navigate these complexities and challenges.
Published by : Aurifer and Thomson Reuters
Cabinet Resolution No. (40) of 2017 on Administrative Penalties for Violations of Tax Law in the UAE
This Resolution outlines the scope of the resolution, general provision of the Administrative Penalty, methods of amending Administrative Penalties, the objections framework and responsibility of issuing Executive Decisions.
Published by : Ministry of Finance, UAE
Federal Tax Authority Opens Registration for Tax Agents and Tax Accounting Software Vendors
Abu Dhabi, November 25, 2017– The Federal Tax Authority (FTA) has officially opened registration for individuals interested in working as Tax Agents and for Tax Accounting Software Vendors, in addition to providing the necessary technical support to help these vendors as they assist UAE-based businesses comply with tax regulations.
Published by : Federal Tax Authority (FTA)
Impact of VAT on the GCC Construction Industry
LEarn about the impact of VAT on the construction industry’s complex supply chains and on roll-over contracts, competitiveness of local firms, how to raise VAT invoices without impacting cash-flows, timelines for claiming back VAT and preferred IT software for VAT filings
Published by : Thomson Reuters
Grant Thornton’s updates on VAT in the UAE – May 2016
Following the announcement earlier this year confirming that the UAE will implement VAT at a rate of 5% from 1 January 2018, the Ministry of Finance(MoF) has just released additional details on the impending introduction.
Published by : Grant Thornton