VAT’s UP

VAT’s UP

FTA to Launch EmaraTax on December 5, 2022

Date: 24 Nov, 2022

  • Share:

Dubai October 24, 2022:

Here’s an important notice from FTA that is all set to launch EmaraTax on December 5 2022.

EmaraTax significantly enhances taxpayer access to the FTA’s services, payment of taxes and obtaining refunds. The new platform also enhances the ability of the FTA to administer taxes in the UAE and enables better, faster decision-making and earlier engagement with taxpayers that need support.

The new online platform is part of the UAE’s Digital Government Strategy 2025 to leverage emerging technologies and build a digital infrastructure that serves the people and business community.

UAE announces VAT Exemption for Board Members from January 1, 2023

Date: 18 Nov, 2022

  • Share:

External URL: https://www.gulftoday.ae/business/2022/11/17/ministry--announces--new-vat--exemption

Dubai November 18, 2022:

Supply of services for people serving as board members will not be subject to value-added tax from next year, the Ministry of Finance said on November 17, 2022.

The ministry added that before the new legislative amendment is implemented, tasks performed by board members – natural and legal persons alike – are treated as taxable services subject to VAT, on the condition that the member provides them on a regular, continuous, and independent basis, and if the total value of these taxable supplies/services and import transactions, exceeds the mandatory tax registration threshold.

Read more.

FTA emails Awareness Information on Excise Tax Registration

Date: 15 Nov, 2022

  • Share:

External URL: http://www.allaboutvat.com/wp-content/uploads/Excise-Tax-Registration-Emailer-1-1.pdf

Dubai November 15, 2022:

As part of Muwafaq initiatives, the Federal Tax Authority (FTA) will send weekly Awareness Materials to taxpayers such as informative guides, and updates. The Authority is committed to ensuring full and voluntary compliance with tax regulations among all business sectors, and keep all registrants abreast with the obligations under the UAE tax laws.

With regards to this, the FTA has sent an emailer on the requirements, processes and conditions for ‘Excise Tax Registration‘ in the region. The application takes hardly about 45 minutes to complete, and can be submitted 24/7 on their official website.

Click here to view the file.

UAE: Get Ready, EmaraTax set to Go Live on December 5

Date: 14 Nov, 2022

  • Share:

External URL: https://tax.gov.ae/en/media.centre/news/the.uae.federal.tax.authority.is.launching.emaratax.on.5.december.2022.aspx

Dubai November 14, 2022:

EmaraTax, FTA’s new enhanced tax platform, is going live on December 5, 2022. The migration to EmaraTax will commence from November 30, 2022 and will be available for use on 5 December. The migration is planned in such a way so as to minimize disruption to taxpayers and coincides with the National Day holidays well in advance of the usual tax return submission and payment dates.

Emaratax is a new tax platform designed to provide a better experience for taxpayers to manage their tax obligations. The smart app will also enhance taxpayer’s ability to administer taxes, enable better, faster decision-making and foster earlier engagement with those requiring support.

Log onto eservices.tax.gov.ae to access the FTA’s online services. This web address will remain unchanged even after the transition to EmaraTax. A dedicated microsite has been launched containing important information about EmaraTax and is intended to help taxpayers prepare for the new platform. From November 7, 2022 to November 18, 2022 the FTA will host virtual awareness sessions for taxpayers regarding the new EmaraTax portal to help them navigate the new system easily.

Click here to get more details about the new platform that includes guidance videos, FAQs and links to online orientation sessions. Stay tuned for more updates and content addition over time.

Read more.

FTA issues VAT guide on refund of VAT for Construction and Operation of Mosques

Date: 11 Nov, 2022

  • Share:

External URL: http://www.allaboutvat.com/wp-content/uploads/VATGRM1-Refund-of-VAT-Incurred-on-the-Construction-and-Operation-of-Mosques-EN-08-11-2022.pdf

Dubai November 11, 2022:

Federal Tax Authority (FTA) has recently issued a VAT guide on ‘Refund of VAT Incurred on the Construction and Operation of Mosques’. The VAT guide explains the requirements and process for recovering input VAT incurred on construction and operation of mosques and this document should be read by persons constructing and/or operating/maintaining a mosque in the UAE.

Click here to view the VAT guide.

Federal Tax Authority granted ISO 22301 for Business Continuity Management

Date: 10 Nov, 2022

  • Share:

External URL: https://tax.gov.ae/en/media.centre/news/the.uae.federal.tax.authority.is.launching.emaratax.on.5.december.2022.aspx

Dubai November 10, 2022:

The Federal Tax Authority (FTA) has enhanced its holistic quality scheme designed to bring its operating systems and services in line with the highest international quality standards, thus earning the ISO 22301 certificate.

The FTA secured the ISO certificate for Business Continuity Management for its Business Continuity and Crisis Recovery System, after updating all of its practices and procedures in the sector. The independent assessment and audit team reviewed compliance with requirements to meet the ISO 22301 standard, as well as internal protocols and documented procedures that have been implemented.

The Authority underlined the continuous growth in the number of FTA employees who obtained international accreditation certificates related to the international standard for business continuity, which is now 74 employees compared to just 49 last year. This marks a 51% increase in 2022, highlighting the FTA’s commitment to developing its human capital in accordance with the highest international standards. The Authority strives to continuously upgrade its services to meet customers’ needs, save time, cut costs, and boost efficiency in resource management, in addition to motivating employees to integrate into the work environment.

FTA Director General His Excellency Khalid Ali Al Bustani said, “The new certification we have earned reaffirms confidence in the Federal Tax Authority’s systems, as well as in its efficiency and ability to face challenges and maintain business continuity. The ISO 22301 for Business Continuity Management reflects the Authority’s commitment and excellence in implementing technological systems and hiring the right talent, capable of ensuring continuity in our service provision, while maintaining the highest levels of quality and safety.”

Read more.

FTA releases Key Amendments to the UAE VAT Law

Date: 09 Nov, 2022

  • Share:

External URL: https://www.allaboutvat.com/fta-releases-key-amendments-to-the-uae-vat-law/

Dubai November 9, 2022:

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. We recommend taxpayers in the UAE to closely study all the amendments to the UAE VAT law. This is in order to determine if your current tax processes require changes to comply with the new regulations.

Read the full article.

UAE Ministry of Finance Amends some Provisions of VAT law

Date: 31 Oct, 2022

  • Share:

External URL: https://www.thenationalnews.com/business/economy/2022/10/29/uae-finance-ministry-amends-some-provisions-of-vat-law/

Dubai October 31, 2022:

The UAE Ministry of Finance has amended certain provisions to the value added tax (VAT) laws (Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT)), which will go into effect from January 1, 2023. The amendments made are in line with international best practices, based on experiences, challenges faced by various business sectors as well as recommendations received from relevant parties.

Some of the major changes to the existing VAT rule introduced by Federal Decree-Law No 18 of 2022 are as follows:

  • Registered persons who make taxable supplies are allowed to apply for an exception from VAT registration if all of their supplies are zero-rated or if they no longer make any supplies other than zero-rated supplies.
  • Setting a 14-day period to issue a tax credit note to settle output tax, in line with the time frame set for issuing tax invoices.
  • The FTA may forcibly deregister registered persons in specific cases if deemed necessary.

Read more…

Want to further know the Key Amendments to the UAE VAT Law in detail, then click here to read the full article.

FTA: New Payment Platform 'Magnati' announced for Tax Liabilities

Date: 30 Oct, 2022

  • Share:

External URL: https://www.khaleejtimes.com/government/uae-new-payment-method-announced-for-tax-liabilities

Dubai October 30, 2022:

The Federal Tax Authority (FTA) announced that it will be discontinuing the use of the eDirham system in paying taxes from October 30, 2022 and replacing it with Magnati, the smart payment option from First Abu Dhabi Bank (FAB).

Magnati provides advanced software solutions for online payments, using next-generation advanced technologies to provide a seamless and efficient payment service for FTA customers. The FTA explained that the new smart payments feature will allow registrants to pay their tax obligations via FAB’s platform, in addition to enabling taxpayers to settle any payment due using credit cards.

Read more…

FTA: Positive Indicators marking the Success of 5th year of Excise Tax in UAE

Date: 24 Oct, 2022

  • Share:

External URL: https://tax.gov.ae/en/media.centre/news/five.years.passed.since.the.implementation.of.excise.tax.in.the.uae.aspx

UAE October 24, 2022:

The Federal Tax Authority (FTA) asserted that the implementation of Excise Tax has been a great success in all aspects. Whether in relation to the implementation mechanisms developed as per international best practices, or in relation to encouraging cooperation from sectors of taxable businesses, the indicators have revealed positive results. Thus demonstrating that the roll-out of Excise Tax in the region has achieved its intended objectives.

The review was part of a press statement the Authority issued to mark the five-year anniversary of the implementation of Excise Tax, which went into effect in the UAE since October 1, 2017. Primarily applied to carbonated beverages at a rate of 50%, tobacco products and energy drinks at 100%, the scope of Excise Goods was later expanded to include sweetened drinks as of December 1, 2019, that were subject to a rate of 50%, and electronic smoking devices, tools along with the liquids used within were subject to a rate of 100%.

Key Indicators

  • The FTA revealed that the total number of Excise Tax registrants grew continuously from 309 by the end of 2017 to 430 by the end of 2018, at a growth rate of 39.16%.
  • The total increased by 60.47% to 690 registrants by the end of 2019, and subsequently by 45.36% to hit 1,003 registrants by the end of 2020, and by another 22.33% to reach 1,227 registrants by the end of 2021.
  • An additional growth rate of 19.72% was recorded in the first nine months of the current year, where the total number of registrants reached 1,469 by the end of September 2022.
  • Overall, this marks a cumulative growth of 375.41% between the end of 2017 and the end of September 2022.

Read more.

FTA to launch a New Integrated Platform⁠—EmaraTax

Date: 11 Oct, 2022

  • Share:

External URL: https://tax.gov.ae/en/media.centre/news/the.uae.federal.tax.authority.to.launch.a.new.integrated.platform.emaratax.aspx

Dubai October 11, 2022:

FTA announced that a new platform will be launched in November this year following an extensive period of assessment, consultation and development. EmaraTax represents a major milestone in the FTA’s ambition to be a leading digitalised tax administration system in full recognition of the UAE’s national digital agenda.

EmaraTax will significantly enhance the way taxpayers access the services of FTA, pay their taxes and obtain refunds. The new platform also greatly enhances the ability to administer taxes in the UAE, enables better, faster decision-making and earlier engagement with taxpayers in need of support.

Offering online access to a larger number of services, a simplified and streamlined user experience and extensive self-help options, EmaraTax offers a range of significant enhancements. Individual taxpayers, tax agents, legal representatives, foreign missions and diplomats, customs bodies and verification agencies will all benefit from the range of developments.

The new platform is a modern tax administration ecosystem that integrates with other influential government entities such as the UAE Central Bank and national technology-based programs including UAE PASS to make best use of common data and simplify the range of user processes from logging-in to compiling tax returns. Importantly EmaraTax is mobile-ready and the App will be launched shortly after the new platform goes live in November 2022.

View more.

FTA publishes a a Cabinet Decision on Charities

Date: 07 Oct, 2022

  • Share:

External URL: https://tax.gov.ae/DataFolder/Files/Pdf/2022/Charities%20List%20-%2026%2009%202022.pdf

Dubai October 7, 2022:

The UAE tax authorities have issued Cabinet Decision No.55 of 2017 on Charities That May Recover Input Tax.

The decision, which has retrospective effect from 1 January 2018, confirms that certain charities (as specified in the list) will be able to recover all the input tax paid by them. This comes with exception of tax excluded from recovery by virtue of UAE’s executive regulations on VAT and tax paid for goods and services used for making exempt supplies.

The file contains the list of charities in both English and Arabic.

FTA showcases latest Digital Initiatives at GITEX 2022

Date: 06 Oct, 2022

  • Share:

External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.showcases.its.latest.digital.initiatives.at.gitex.global.2022.aspx

Dubai October 6, 2022:

The Federal Tax Authority (FTA) showcased its latest digital initiatives at GITEX Global Exhibition at the Dubai World Trade Centre. More than 5,000 companies from over 90 countries participated in the event.

The Authority revealed that its participation at GITEX highlights its latest digital initiatives, launched as part of the continuous development plans to match the best standards. The initiatives are in line with UAE’s Digital Government Strategy, designed to drive the smart transformation of all services, and introduce seamless and proactive digital services. The objective is to provide innovative models that embody the leadership and excellence of the government systems, and strengthen efforts to meet taxpayers’ aspirations and process their transactions quickly.

FTA Director General His Excellency Khalid Ali Al Bustani said “Through its participation at GITEX, the world’s largest tech event, the FTA aims to achieve two main objectives. The first is to introduce the FTA’s experts to the latest technologies and smart digital systems in the field of tax administration, which can be built upon to ensure the modernisation of the FTA’s services. This in turn, supports our efforts to fulfil the directives of our wise leadership and make the UAE one of the best countries in the world.”

Read more.

FTA announces 100 percent Digital VAT Refund Scheme for Tourists

Date: 25 Sep, 2022

  • Share:

External URL: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.and.planet.tax.free.announce.worlds.most.innovative.aspx

Dubai September 25, 2022:

The UAE’s Tax Authority (FTA), in partnership with Planet Tax Free, launched the world’s most innovative and 100% digital VAT-refund scheme for tourists. The paperless procedure is considered the most advanced solution of its kind in the world and is a reflection of the government’s continuous adoption of proactive solutions based on the concept of proactive government work, to meets the requirements of the future and positively reflect on customers.

The announcement was made at a joint press conference in the presence of H.E. Khalid Ali Al Bustani, Director General of the UAE Federal Tax Authority and Eyad Al-Kourdi, General Manager of Planet Tax Free, the operator of the tax refund system for tourists in the UAE.

The integrated system was demonstrated at the press conference, showcasing the strength of using electronic invoices issued at the point of sale registered within the authority’s system, instead of traditional paper invoices. The new solution is integrated electronically between retail outlets and the tax refund scheme, ensuring a seamless digital process of issuing, sending, modifying and saving invoices for tourists.

Read more.

FTA holds 3 Youth Circles on Tax Culture to support SMEs

Date: 16 Sep, 2022

  • Share:

External URL: https://tax.gov.ae/en/media.centre/news/youth.panels.aspx

Dubai September 16, 2022:

The Federal Tax Authority (FTA) Youth Council, in cooperation with the Federal Youth Authority (FYA), held three youth circles on Tax Culture to Support Small and Medium Enterprises(SMEs) as part of the Council’s initiatives to raise tax awareness and facilitate tax compliance through direct engagement with youth business.

More than 100 representatives of SMEs participated in the discussions in Abu Dhabi, Dubai and Ajman. The sessions were attended by FTA Director General, His Excellency Khalid Ali Al Bustani, FYA Director General, Saeed Al Nazari, Abu Dhabi Department of Economic Development (ADDED) Undersecretary, Rashid Al Baloosh and the Mohammed bin Rashid Establishment for Small and Medium Enterprise Development Executive Vice President, Saeed Al Marri, alongside a number of federal and local authority officials.

The youth circles dealt with a set of aspects that include the services provided by the authority, its future directions to enhance youth tax culture in the SME sector and the prominent challenges young people face at SMEs and ways to overcome them.

Read more.

FTA publishes a Guide on 'Excise Stock Movement For Warehouse Keepers not Registered for Excise Tax'

Date: 15 Sep, 2022

  • Share:

External URL: http://www.allaboutvat.com/wp-content/uploads/Non-Registered-Excise-Stock-Movement-Guide-English_V1.2-19-08-2022.pdf

Dubai September 15, 2022:

A Public Clarification was published on August 2022 by the FTA on ‘Excise Stock Movement Guide For Warehouse Keepers who are not Registered for Excise Tax’.

This guide helps Warehouse Keepers (WHK) understand their responsibilities of holding a warehouse in a Designated Zone (DZ) in the UAE and navigate the e-Services portal from a systems perspective. It further throws lights on the following aspects:

  • The process of declaring Excise Goods that belong to Excise taxpayers that are held in the Designated Zone beginning January, 2021.
  • Assist in understanding the Excise Tax compliance obligations that Warehouse Keepers have to comply with.
  • An overview of the declaration forms that need to be filed by the Warehouse Keeper of Designated Zones in the UAE holding stock of Excise taxpayers and explanation of the icons and symbols included in the forms.

The sections of the guide offer a detailed explanation about the declaration forms and who, how and when a Warehouse Keeper should complete and submit them to the FTA.

FTA announces World’s First Paperless Tax Refund experience for Tourists

Date: 14 Sep, 2022

  • Share:

External URL: https://www-khaleejtimes-com.cdn.ampproject.org/c/s/www.khaleejtimes.com/uae/uae-announces-worlds-first-paperless-tax-refund-experience-for-tourists?amp=1

Dubai September 14, 2022:

The UAE’s Federal Tax Authority (FTA) announced the world’s first paperless tax refund scheme for tourists.

Khalid Ali Al Bustani, Director General of FTA, said the system has been linked with the retailers hence all the receipts will be generated electronically and tourists will not have to carry paper receipts of their purchases for claiming VAT refunds. UAE is the first country in the world to achieve this milestone.

The tourists need to spend a minimum of AED 250 to claim a VAT refund. In addition, there are a number of kiosks placed at various locations in the country for tourists to claim a refund.

Read more.

FTA to implement Muwafaq Priviledge Package for Facilitating SMEs

Date: 13 Sep, 2022

  • Share:

External URL: http://www.allaboutvat.com/wp-content/uploads/FTA-Muwafaq-Emailer-2022-AllaboutVAT.pdf

Dubai September 13, 2022:

In line with the development goals set by the UAE to support small and medium enterprises, which represent the backbone of the national economy, the Federal Tax Authority (FTA) has begun designing and implementing Muwafaq Privilege Package which aims to provide innovative tax solutions to facilitate transactions for SMEs with speed, ease and accuracy.

The highlights of the Muwafaq package include:

  • Acceleration of tax registration procedure.
  • Preparing and offering low cost tax accounting programs to ease financial burdens of SMEs.
  • Prioritization of SME procedure requests to facilitate ease of access to FTA services.
  • Cooperation with service providers to offer certain taxpayers support services for SMEs.

View more benefits.

FTA resumes Tax Clinic initiative in Ras Al Khaimah and Sharjah

Date: 12 Sep, 2022

  • Share:

External URL: https://bit.ly/3eLtz8o

Dubai September 12, 2022:

The Tax Clinic initiative organised by the Federal Tax Authority (FTA) resumed its field activities across the emirates with sessions in Ras Al Khaimah and Sharjah. The sessions were designed to raise tax awareness and enhance tax compliance , while establishing and maintaining direct communication with business sectors,.

Two rounds of sessions were held last month under the campaign. The first of which was held over three days from 16 to 18 August at Tasheel Enjaz – Alrams Centre in Ras Al Khaimah, while the second round took place at the Tasheel-Al Thiqah Multi-Services Centre in Mleiha in the Emirate of Sharjah from 23 to 25 August.

The Tax Clinic initiative was launched way back in August 2018 in all seven emirates to raise tax awareness, assist taxpayers in overcoming any obstacles they face and ensure self-compliance. FTA representatives present across all locations answer questions about registration, how to file tax returns and pay tax-related obligations. FTA organized these remote awareness sessions under the Tax Clinic initiative for more than two years, bringing together hundreds of business sector representatives and tax system stakeholders.

FTA Director General His Excellency Khalid Ali Al Bustani said “The Federal tax Authority organizes the Tax Clinic campaign in collaboration with Departments of Economic Development and municipalities across all seven emirates, under the framework the FTA established for coordinating with its strategic partners in the public and private sectors providing top-quality services and ensuring the successful implementation of tax legislation.”

Read more.

Dubai Customs Authority Bans Export of Iron Scrap & Wastepaper till Sep 30

Date: 11 Sep, 2022

  • Share:

External URL: https://www.dubaicustoms.gov.ae/en/PoliciesAndNotices/Notices/CN7_2022.pdf

Dubai September 11, 2022:

The Dubai Customs Authority published customs notice 07/2022 announcing a temporary ban on the export and re-export of iron (ferrous) scrap and paper waste. The customs notice states that the temporary ban on iron scrap and waste paper exports has been extended until September 30, 2022.

The UAE had issued a similar notice in 2020 which said that the ban is effective from May 15, 2020 for a period of four months ending 1September 15, 2020. This was in regards to strengthen the country’s domestic demand.

View the notice.

Majalis Abu Dhabi conducts Awareness Session on VAT Refund to UAE Nationals on building new residences

Date: 01 Sep, 2022

  • Share:

External URL: https://bit.ly/3U0xXRb

Abu Dhabi September 1, 2022:

As part of the lecture series at Majalis Abu Dhabi at the President’s Court, the Federal Tax Authority (FTA) held an awareness session that was broadcast live on Majalis Abu Dhabi’s Instagram account on the procedure for UAE nationals to recover the Value Added Tax (VAT) incurred on building their new residences. The session was broadcast live on Majalis Abu Dhabi’s Instagram account.

The session was held remotely, bringing Emirati citizens together with a team of experts from the FTA who explained the process for refunding VAT to UAE citizens on the construction of their new residences.

Speakers at the session clarified the steps to be taken to recover VAT through the FTA’s e-Services, starting with submitting the refund request with all supporting documents, all the way to receiving the refund amount by bank transfer to the applicant’s account.

During the session, the FTA’s team of experts outlined the criteria for submitting a VAT refund request incurred on the construction of new residences by UAE citizens, explaining the steps needed to create and verify an e-Services account for new users, as well as how to create a special refund requests account. The team also outlined how to submit and track a refund request, the deadline for submission, and the required documents. They also highlighted which potential applicants are eligible to recover VAT on their new homes, as well as which taxes are refundable.

Read more.

Commercial Establishment Shutdown for violating Tax Regulations worth AED 91 million

Date: 28 Aug, 2022

  • Share:

External URL: https://www.khaleejtimes.com/crime/dubai-tobacco-facility-shut-down-for-tax-violations-worth-dh91-million

Dubai August 28, 2022:

Following a joint inspection campaign by the Federal Tax Authority (FTA) in cooperation with the General Administration of the Federal Criminal Police in the Ministry of Interior and the General Command of Dubai Police represented by the General Department of Investigation and Criminal Investigation, a non-compliant commercial establishment was seized and closed in Dubai after it was caught selling tobacco-based products without Digital Tax Stamps.

According to the press release, a total of 5,430,356 packs were confiscated from the violators for not bearing the trademark of Tax Stamps and the tax due on these products amounted to 91,833,016 AED.

The Authority took necessary legal measures against the violating establishment, as part of its continuous efforts to strengthen control over markets and prevent malpractices. The Authority reaffirmed its commitment to enhancing collaboration with all relevant federal and local government entities in order to ensure tax compliance across the emirates.

Read more.

Read more on Digital Tax Stamps to Track and Trace Excisable Products

UAE: FTA Extends Timeframe to Pay Penalties till 31 December 2022

Date: 10 Aug, 2022

  • Share:

External URL: https://bit.ly/3p8fgNf

Dubai August 10, 2022:

FTA calls tax registrants to benefit from the extension of the grace period for the re-determination of administrative penalties on violating tax law until December 31, 2022.Tax registrants who were not able to benefit from redetermination by December 31, 2021, can now benefit from the one-year extension.

The decision has been taken by the Cabinet in line with the wise leadership’s directives to reduce burdens on business sectors and enhance their abilities to contribute more to the growth of the national economy. The decision is also a part of the FTA’s goal to provide a legislative environment that encourages a high level of tax compliance.

View more.

UAE: FTA sets Time Limit for Claiming Refund of VAT by Tourists

Date: 08 Aug, 2022

  • Share:

Dubai August 8, 2022:

The Federal Tax Authority (FTA) issued Decision 4 of 2022 for ‘Setting the Time Limit for Claiming Refund of VAT by Tourists’. Following are the key points of the decision.

  • One year time limit has been set up for tourists to claim the refund of Value Added Tax through bank card or by cash, from the date of verification of the refund request.
  • If Tourist does not claim the VAT refund within one year, in such case operator of the Tax Refunds for Tourist Scheme has to deposit the unclaimed amount to FTA within 1 month from expiration of the time limit of 1 year.
  • This decision will be effective from 1st June 2022.

View more.

UAE: Lawyer Penalized with Imprisonment and Fine for Tax Evasion

Date: 05 Aug, 2022

  • Share:

External URL: https://www.khaleejtimes.com/crime/uae-lawyer-fined-dh3-million-sentenced-to-3-years-in-jail-for-tax-evasion

Abu Dhabi August 5, 2022:

The Abu Dhabi Criminal Court convicted the accused Asim Ghafoor, who has American citizenship, of committing two crimes of tax evasion and money laundering. The court sentenced him to three years in prison and imposed a fine of AED 3 million, along with deportation from the UAE.

The case arose upon the American authorities’ request for judicial assistance regarding their investigations of the accused for making suspicious money transfers to the state.

The UAE Public Prosecution (PP) started its procedures by studying the judicial assistance request and verifying the nature of the financial transactions related to the aforementioned accounts and bank transfers. Suspicions of money laundering crime aroused as the accused carried out international transfers without proof of their source. Based on the findings of the investigations, the accused was found guilty by the Criminal Court on charges of tax evasion and money laundering.

Read more.

UAE's FTA increases Inspection Visits 104% in 6 months

Date: 22 Jul, 2022

  • Share:

External URL: http://wam.ae/en/details/1395303068351

Dubai July 22, 2022:

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 legislation 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, Customs and Port Security and various Economic Development Departments.

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

Read more.

Ajman Free Zone witnesses 33 percent Increase in Corporate Tax Companies

Date: 15 Jul, 2022

  • Share:

External URL: https://www.wam.ae/en/details/1395303060045

Dubai July 15, 2022:

As the UAE gears up for the implementation of corporate tax in 2023. Ajman Free Zone records a significant increase of 33 percent in the number of corporate tax institutions.

H.E Eng. Ali AlSuwaidi, Director-General of Ajman Free Zone, stated that “The Federal Corporate Tax will become applicable in 2023 and is believed to propel the country forward.”

“Businesses are expected to align their relevant processes in order to ensure full compliance with the new law, and will need the assistance of specialized tax advisory firms specializing in this domain. As a global business hub, Ajman Free Zone is prepared to address these requirements with innovative solutions and cost-effective packages, while facilitating growth opportunities for tax advisory companies. Moreover, we recognize the importance of these entities to enhance our performance and ensure compliance with federal regulations.”

“In addition, the introduction of the corporate tax is set to position the UAE as an attractive destination for foreign direct investments. This will drive us to help companies grow and expand, streamline their business processes, and attract more foreign investors who can benefit from the competitive advantages of Ajman, one of the region’s top investment destinations,” he added.

Read more.

FTA released new Public Clarification on Excise Goods

Date: 01 Jul, 2022

  • Share:

External URL: https://bit.ly/3NFNy49

Dubai July 1, 2022:

The Federal Tax Authority (FTA) has issued a public clarification EXTP007 offering guidance on excise goods. The guide explains the scenarios where relief from excise tax may be granted for excise goods that are found to be deficient, shortage, considered as wastage, or where goods are intended to be destroyed.

The highlights of the public clarification are as follows:

Excise goods that are considered wastage or deficient when located within a designated zone will be treated as released for consumption and therefore will be subject to excise tax. However, as an exception, goods will not be considered to be released for consumption where:

  • Warehouse keeper notifies FTA within 30 days of discovering the deficiency in stock or shortage in quantity. This notification is given through a form on the e-services portal – Lost and Damaged declaration EX203B.
  • Shortage or deficiency is due to a legitimate cause accepted by FTA.
  • Where these conditions are met, a taxable person will not be required to account for excise tax on deficient or missing goods.

    View more in the guide.

    FTA released a new Public Clarification on Gold Making Charges

    Date: 29 Jun, 2022

    • Share:

    External URL: https://tax.gov.ae/DataFolder/Files/Guides/VAT/VAT%20Guides/VATP029%20Gold%20Making%20Charge15062022.pdf

    Dubai June 29, 2022:

    The Federal Tax Authority (FTA) has recently released a Public Clarification – VATP029 on Gold Making Charges, iterating that the suppliers of the gold jewellery are required to pay VAT on the making charges component by charging the same in the invoice, which would not be covered under the ‘special reverse charge mechanism’.

    This Public Clarification provides detailed guidance on the VAT legislation application pertaining to making charges received by gold jewelers and further explains several instances where the making charges are taxable under VAT or not.

    View the file.

    FTA releases a Guide to acquaint Taxpayers with their Tax Obligations

    Date: 15 Jun, 2022

    • Share:

    External URL: https://tax.gov.ae/ftatacsoft5cms/DataFolder/Files/Guides/VAT/Awareness/Get%20to%20know%20your%20Tax%20Obligations.pdf

    Dubai June 15, 2022:

    As a UAE business resident, you need to be aware of your varied tax obligations and abide by the tax laws in the country. That’s why it is important you understand your federal, state and local tax requirements. This will help you file your taxes accurately and make timely payments, thus saving you from penalties and encountering trouble with the law.

    In this regard, the Federal Tax Authority (FTA) has issued a Comprehensive Guide on ‘Know your Tax Obligations’ to orient Taxpayers with their tax liabilities. The guide includes:

    • Criteria for VAT registration
    • Supplies exempt from VAT
    • Zero-rated VAT supplies
    • VAT records and supporting documentation
    • Formation of tax groups
    • Creating and using e-services account
    • Obligations after tax registration
    • Elements of a valid tax invoice
    • Timely submission of tax returns and tax return periods
    • Entitlement to recover input tax
    • Contact details of FTA

    For more details log onto www.tax.gov.ae

    Israel and UAE boost ties by signing free trade pact

    Date: 01 Jun, 2022

    • Share:

    External URL: https://www.reuters.com/world/middle-east/israel-uae-sign-free-trade-deal-ambassador-2022-05-31/

    Dubai June 1, 2022:

    Israel and UAE sign a free trade agreement on May 31, 2022. The pact aims to boost ties between the two countries by eliminating most tariffs and lifting their annual bilateral trade to more than $10 billion within five years. As per the official data, Emirati-Israeli trade records stood at $1.2 billion in 2021.

    Tariffs will be removed or reduced on 96% of goods traded between the nations including foods, medicine, diamonds, fertilizers, jewelry and chemicals.

    The agreement was signed in Dubai by Minister of Economy and Industry Orna Barbivai and her counterpart, UAE Minister of Economy Abdulla bin Touq Al-Marri after months of negotiations.

    Read more.