The UAE Ministry of Finance has issued a landmark decision on Small Business Relief allowing small businesses with revenues of AED 3,000,000 ($ 816,880) or less to claim tax relief in a tax period when their revenue does not exceed a certain threshold. This tax relief scheme aims to support startups and other small businesses by reducing their corporate tax burden and compliance costs.

The launch of the EmaraTax platform represents a significant milestone in the landscape of tax compliance in the UAE. The new digital platform facilitates hassle-free access to a wide range of tax services in the UAE including tax registration, return filing, refunds, payment and more. Its added secured UAE PASS login feature aligns with the UAE’s national digital agenda to leverage emerging technologies and build a robust digital infrastructure for its people.

January 1, 2023 marks the completion of five years of Value Added Tax (VAT) in the UAE (first introduced in UAE on January 1, 2018). Over the years a lot of amendments were made to the VAT law with new additions of decrees and articles. Staying on top of the new changes is essential to being a tax-compliant resident as well as avoiding fines and getting into trouble with the law of the land. In this article, we run you through a list of UAE VAT law changes you must be aware of this year.

We wish to inform you that the United Arab Emirates (UAE) Federal Tax Authority (FTA) has published notable amendments to the Federal VAT Decree-Law No. 8 of 2017 (UAE VAT Law). This is the first update to the UAE VAT Law ever since its introduction in 2017. The amendments will go into effect from January 1, 2023. In this piece, we have outlined an overview of the key changes to the UAE VAT Law.

Many governments have lost revenues in millions each year due to illicit trade of tobacco, cigarettes and alcohol. To prevent lost tax revenue, it’s essential to plug loopholes in the supply chain as the chances of tax evasion are ample once products cross international borders for sale. In order to combat such illegal trade, DTS was introduced to tighten control over the suppliers’ commitment to pay excise tax and monitor movement of goods.

FTA introduced Cabinet Decree No 105 outlining the procedures for administrative penalty installments and waivers. This new cabinet decision went into effect on 1st March 2022. The scheme allows taxpayers to settle administrative penalties through installments under defined conditions and eligibility criteria. Here are the highlights of the decision

The UAE Corporate Tax Regime, effective from June 2023, permits companies to form tax groups. The Public Consultation Document for the Corporate Tax Law released by UAE Ministry of Finance (MoF) prescribes rules for forming a tax group by a group of companies. The prime objective behind introducing separate rules for group of companies is to reduce the overall tax compliance cost.

The UAE has taken significant steps to enhance tax transparency and facilitate the exchange of tax information by bringing its domestic tax rules in line with international standards. One such major move is the introduction of Corporate Tax (CT) which will be levied on business profits on or after June 1, 2023. Here are some interesting aspects you should know about the UAE CT regime, that will assure you that corporate tax is the way forward and be thankful you do business in the UAE.

The Ministry of Finance (MoF) announced that federal Corporate Tax (CT) will be levied on business profits at the rate of 9%, effective from 1 June 2023. The aim of introducing CT in the UAE is to cement its position as a leading global business hub and be in line with international standards for tax transparency.
In this article, we brief you on the key features of the UAE CT Regime and its applicability to natural and legal entities in the UAE.

Since the introduction of VAT in the UAE every business in the UAE has been oriented towards the importance of VAT registration with The Federal Tax Authority (FTA). However, companies also need to have an in-depth understanding of when and under what situations they must deregister their businesses from VAT.

The purpose of levying excise tax was to reduce the consumption of unhealthy and harmful commodities while also raising the revenue for the government to spend on beneficial public services. Any business which produces, imports, or stockpiles excise goods, or releases them from a designated zone in the UAE, should register for excise tax.

The buzz in the region is Qatar is expected to introduce VAT in late 2021 or early 2022 depending on the stability of their economy, trade and other factors. In this article we brief you on the possible impact of this move on consumers and businesses in Qatar.

Insync with the World–

In 2022 public sector weekends have officially switched to Saturday and Sunday in the United Arab Emirates (UAE), as the country aligned its working week with global markets. The good news is the government also announced a four-and-a-half day working week for federal government departments.

With Saudi Arabia having successfully introduced Phase 1 of E-invoicing on December 4, 2021, there’s a buzz that other GCC countries may follow soon. Here’s all you need to know about E-Invoicing, its relevance, phases and guidelines for taxpayers.

Foreign businesses visiting the country for business purposes and exhibitors in EXPO 2020 are entitled to request a refund on the VAT expenses incurred on the goods and services related to the exhibition. The FTA has called on official participants to benefit from the special refund scheme on goods and services in connection with the EXPO.
In this article, we discuss the methods applicants can claim VAT refund, the categories of claimable VAT expenses and the supporting documents to be submitted.

In enhancing the excise tax regime in the UAE, the Federal Tax Authority (FTA) has announced the adoption of new design for ‘Digital Tax Stamps’ to be placed on the packaging of cigarettes, electrically heated cigarettes, and waterpipe tobacco (known in Arabic as ‘Mu’assel’) circulated in local markets.

Not many businesses are aware of important Anti-Money Laundering policies and their allied implications. Every business owner ought to be aware of the important terms related to AML during these current times, where a business could fall prey to money-laundering. Having clarity on the meaning of AML policies and their frequently used terms will help you better understand the rules.

Any UAE National building a new residence in the UAE is likely to incur VAT on the construction costs. For this purpose, FTA has released VATGRH1 guide on ‘VAT Refund for UAE Nationals Building New Residence’ to facilitate UAE nationals to obtain refund of VAT incurred by them on building a new residence.

Businesses that function in the UAE must have thorough knowledge about the Tax Laws in the region. A failure to comply with the VAT/Tax regulations will attract heavy penalties. The Federal Tax Authority (FTA) is the Governing Authority that regulates tax laws, tax collections and penalties for non-compliance.

As part of its ongoing efforts to protect consumers from commercial fraud and combat tax evasion with various mechanisms, the Federal Tax Authority (FTA) of the UAE has launched an innovative smart application for consumer’s use. This latest technology allows consumers to scan the digital tobacco products and detect illegal products so that they can be reported to the FTA through the application.

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.

FTA published a Public Clarification on Bad Debts Adjustment in the UAE on 17th March 2021. This guide discusses the conditions that need to be fulfilled in order to benefit from the Bad Debt relief scheme.

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.

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.

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.

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.

The VAT landscape is evolving within the GCC, and therefore, there is a need for a solution that offers agility to respond to these changing regulatory requirements.

This Public Clarification discusses the conditions that have to be met for a transfer to qualify as a transfer of a going concern under Article 7(2) of the Decree-Law.

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.

The FTA Released a series of E-learning guides for filing VAT returns.  Download here and view the PDF version of the Powerpoint.

The UAE Government has released a guide to help users navigate the e-Services Portal and meet the compliance obligations in respect of VAT Return filing, payments of tax and obtaining VAT refunds.

Access the unofficial translation of Cabinet Decision No. (59) of 2017 on Medications and Medical Equipment which will be subject to zero tax rate.

Read the unofficial translation of Cabinet Decision No. (59) of 2017 on Designated Zones for the purposes of the Federal Decree-Law No. (8) of 2017 on Value Added Tax

The FTA provides guidance to all businesses that deal with Zero-Rated or Exempt Supplies.

Here is all the information released by the FTA that retailers need to know to implement VAT.

This official FTA document presents all the information that businesses need to know to register for VAT.

The FTA has released the official document indicating the impact of VAT on the various industries.

This whitepaper shows the impact that VAT will have on real estate developers and buyers.

Here’s the latest infographic the Federal ministry has released on VAT for those in Education sector.

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.

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.

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

This version of the whitepaper series will enable readers to understand what needs to be done by businesses and the potential effects of the tax on their day to day activities.

Oracle and HBR present a white paper on the benefits of deploying VAT applications on the Cloud and rolling out new features much faster than an on-premises implementation.

Make sure your business is up to speed with the new requirements and the strategic implications.

Assessing GCC Vat Implementation Through Singapore Case Study

Deloitte outlines a structured approach to VAT implementation

Article looks at the potential impact on land transactions.

Thomson Reuters & ACCA VAT Readiness Survey 2017

Insight into Kuwait’s move to implement Corporate Tax ahead of VAT.

Howrath HTL discusses the impact of VAT on the hospitality sector.

Richard T. Ainsworth, Boston University School of Law and Musaad Alwohaibi, University of Florida, Fredric G. Levin College of Law, discuss the ramifications of Intra-Gulf Trade under the VAT regime.

Deloite discusses the sectoral impact of VAT in the GCC in this two volume report.

Volume 2 of VAT’s sectoral impact by Deloitte.

Price Waterhouse Cooper provides a useful overview of VAT in the GCC. It is an excellent starting point to learn more about VAT

An unauthenticated translation of the framework circulated by EY.

VAT will significantly affect nearly every UAE business in some way. KPMG shows how to be prepared.

An introduction to setting-up VAT in Saudi Arabia by Innovate

This is a comprehensive publication providing a summary of the key information mentioned in the framework agreement – Apr 26 2017

The representatives of the Member States of the GCC have now all signed the Unified VAT Agreement for the GCC.

Oman to opt for different VAT treatments in relation to some supplies

Arshad Gadit – BDO Bahrain, Partner, Assurance and Business Advisory Services presentation on VAT in Bahrain.

VAT systems currently exist in more than 150 countries worldwide and are being introduced in the Gulf countries for the first time.

The reason for implementing VAT, its structure and what it means for business.

E&Y treatise on GST readiness in India is a good guide for VAT readiness in GCC.

The impact of the VAT differs by the industry, some more affected than the others.

Indirect Taxation in UAE in the form of VAT

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.

A brief overview of the VAT Implementation Process in KSA