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The Federal Tax Authority (FTA) on Saturday announced four conditions for retailers to register in the digital system of the Tax Refund Scheme for Tourists, which will come into effect as of the fourth quarter of this year.

The FTA set condition that the retailer must be registered with the FTA and have a tax registration number (TRN); the supplier’s sales of goods must not be excluded from the refund scheme; the retailer must submit a request to participate in the Scheme as determined by the FTA; and finally, the retailer must meet the financial credit requirements specified by the system operator and be committed to submitting Tax Returns and paying due taxes regularly.

The Authority is implementing the Scheme in cooperation with Planet.

In a press statement issued today, the Federal Tax Authority cautioned that a retailer’s membership in the Tax Refund Scheme for Tourists would be revoked if they fail to meet their obligations, whether those stated in tax laws or in the contract between the system operator and the retailer.

Khalid Ali Al Bustani, director-general, Federal Tax Authority, asserted that the past few days witnessed a great demand for registration in the Tax Refund Scheme for Tourists.

“The system operator will coordinate between retailers registered in the tax system and wishing to register for the Scheme, connecting them with ports of entry and exit all around the UAE,” he explained.

The FTA is hosting a meeting on September 25 in Ajman in an effort to maintain direct and constant communication with businesses, and introduce them to the terms and conditions for registering in the Tax Refund Scheme for Tourists, Al Bustani added.

“We have seen strong enthusiasm from retailers, outlets and shops across the UAE to register for the scheme, and look forward to seeing registrations grow,” said Gary Byrne, director of Worldwide Strategic Partnerships & New Markets at Planet.

Both water and electricity will be taxed at 5 per cent from January 1, 2018, according to a set of draft executive regulations.

According to the document, water and electricity will be treated as supplied goods, and therefore subject to a 5 per cent value-added tax (VAT).

This category of taxable goods are defined in the regulations as the “supply of water and all forms of energy including electricity and gas … whether used for lighting, or heating, or cooling, or air-conditioning or any other purposes”.

The UAE Council of Ministers on Monday has announced the penalties for violations of the country’s tax law.

The Council’s meeting was chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The Cabinet decision states that a fine must be no less than Dh500 and no more than triple the value of the tax on the transaction in question.

In the case of a business failing to keep the required records and other information specified in the tax laws, the business will be fined Dh10,000 the first time and Dh50,000 for a repeat offence

The new Excise Law or Federal Decree-Law No. 07 of 2017 sets the framework for the imposition and administration of excise duties in the UAE.

The new excise law requires excise tax to be imposed on certain activities around specific goods, activities such as the production or import of excise goods in to the UAE, as per the new excise law well as the maintaining stock of these in the UAE. The due tax is the responsibility of the person who conducts any of these activities.

The Federal Tax Authority (FTA) may exempt a person from registration, but not payment of tax, if they can demonstrate that they will not regularly import excise goods.  under new excise law However, anyone who has been exempted from tax registration must immediately inform the authority of any changes to his/her circumstances that would make them subject to tax.

A registered taxable person shall apply for a tax deregistration when no longer liable for Excise Tax according to the Decree-Law and within the time frame stated in the regulations of new excise law.

we at coast accounting and auditing  have a good clear view of what new excise law is  and  can provide better services  for you on coming VAT

The Federal Tax Authority will open online registration for tax purposes for businesses in mid-September 2017, head of Federal Tax Authority said on Tuesday.
“The Excise Tax and VAT laws are expected to be issued during the third quarter of this year and the regulations concerning both laws in addition to federal tax procedures are expected to be issued during the fourth quarter of 2017,” said Khalid Ali Al Bustani, Director General of FTA at a press conference in Abu Dhabi.

About 350,000 companies in the UAE will be covered under VAT starting from January 1. It will be rolled out across the UAE and Saudi Arabia.
Excise tax will be implemented in the fourth quarter of this year.
All business that meet the minimum annual income of Dh375,000, as confirmed by their financial records, are required for compulsory registration with the VAT system with the value set at 5 per cent.

The UAE had announced its intention to the introduce value added tax (VAT) in the country starting January 1, 2018. The issuance of the final tax law has set the stage for implementation of VAT and meeting the implementation deadline.
The new law comes after the UAE, represented by the Ministry of Finance, ratified the Common Value Added Tax (VAT) Agreement of the States of the Gulf Cooperation Council and the Common Excise Tax Agreement of the States of the Gulf Cooperation Council, following Federal Decrees No. 31 and 32 of 2017, issued by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan. It is a follow up step from Federal Decree-Law No. 13 of 2016 on the establishment of the Federal Tax Authority (FTA) tasked with executing tax laws in the UAE.

The Tax Procedures Law also establishes the register of tax agents who may interact with the FTA on behalf of taxpayers, specifies the basic requirements for appointing tax agents, and sets the standards for maintaining confidentiality by the authority as well as its officers.
Provisions of the law
The law requires any person conducting any type of business to keep accounting records and commercial books, as well as any tax-related information as determined by the Law.

Tax returns, data, information, records and documents must be submitted to the authority in Arabic. The FTA may, however, accept documents in any other language, as long as the person provides a translated copy in Arabic at their expense and responsibility, if so requested.
Furthermore, any person obliged to register for taxation must do so, as stipulated by the law.
Registrants must include their Tax Registration Number (TRN), in all correspondence and transactions with the authority or with others. They must also inform the authority by filling the form of any circumstance that might require the amendment of information related to their tax record within 20 working days of the occurrence of said circumstance.

 

The UAE Cabinet recently approved a proposal by Sultan Bin Saeed Al Mansouri, Minister of Economy, to extend the period for existing companies in the UAE to comply with Federal Law No 2 of 2015 on Commercial Companies by one more year.

Companies established before the issuance of the new law under Article No 374 were originally given from July 1, 2015 to June 30, 2016, to amend their Memorandum of Association and Articles of Association in compliance with the provisions of this law.

According to article 357, in case of Late Adjustment, companies will be fined Dhs 2,000 per day of delay calculated from the day following the expiry date of the applicable period for such purpose. The second clause of article 374 states that a company will fall under the provisions of the law should it fail to make adjustments within the given period. The Cabinet agreed with the Minister of Economy’s suggestion to allow the companies concerned to adjust their positions according to the provisions of the law within no later than one year.

For this purpose, and based on the UAE Cabinet’s proposal of Minister of Economy, an additional one year has been given for the adjustment of positions, starting from July 1, 2016 and ending 30 June, 2017. During this period companies covered by the new Commercial Companies Law are requested to make the necessary adjustments in accordance with the law’s provisions.