VAT Refund for Tourists

Tourists to the UAE can also get the VAT they have paid back when they leave the country. However, they are required to pay a 15 per cent administrative fee as well as a 4.8 per cent tag fee for every individual claim. Tourists visiting the UAE who are at least 18 years old are eligible for the refund. The visitor must also intend to exit the UAE along with the purchased goods within 90 days. However, the VAT paid cannot be refunded unless the total value of tax-inclusive purchases is at least Dh250. Tourists can get their money back at the airports in Abu Dhabi, Dubai and Sharjah. Tourists will receive their refunds through a special device placed at the departure port – airport, seaport, or border port – by submitting the tax invoices for their purchases from the outlets registered in the Scheme, along with copies of their passport and credit card. Once these documents are submitted, tourists can either recover the VAT in cash in UAE dirhams, or have it transferred to their credit card. Until October 2018, 4,000 retail outlets across the UAE were connected electronically to the system. These eligible outlets can be identified with posters displayed on their storefronts and visible to visitors.

VAT services in UAE and exemption

Under VAT there are three categories: 5% Value Added Tax Zero-rated supplies Exempt supplies

FTA defines conditions for companies to de-register from VAT in UAE

Failing to submit application could lead to the imposition of administrative penalties Abu Dhabi: The Federal Tax Authority, FTA, has defined the conditions for tax de-registration, in accordance with Federal Decree-Law No. 8 of 2017. In a statement issued on Saturday, the Authority clarified the conditions and procedures for de-registration for Value Added Tax (WAT), since its implementation. The FTA explained that if a registrant stops making taxable supplies or if the value of the taxable supplies made by the registrant over a period of 12 consecutive months is less than the voluntary registration threshold of Dh187,500 and it is not expected that the total value of the registrant’s anticipated taxable supplies or expenses subject to tax in the coming 30-day period will exceed the voluntary registration threshold, then the registrant must submit a de-registration application to the Authority. It went on to say that the de-registration application must be submitted within 20 business days of the occurrence of any of the aforementioned cases using the Authority’s e-Services portal, adding, “knowing that failing to submit the de-registration application within the period specified in the tax legislation will lead to the imposition of administrative penalties as stipulated in the Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.” The Authority confirmed that registrants will not be de-registered unless they have paid all due taxes and administrative penalties and filed all required tax returns for the period in which they were registered as stipulated under the tax legislation.

FTA clarification on VAT application for e-commerce

The UAE’s Federal Tax Authority (FTA) on Wednesday further clarified that though five per cent value-added tax (VAT) will be applicable to general e-commerce purchases however there are a number of special rules that apply specifically to e-commerce transactions. It said the tax will also be applicable on digital services including supply of domain names, web hosting and remote maintenance programmes and equipment, software, images, text and information provided electronically such as pictures, screen savers, electronic books, documents and other digitised files such as music, movies and games on demand and online magazines. Other services identified under the banner of “electronic services supplies” include the supply of advertising space on a website and the rights associated with that advertisement, and political, cultural, artistic, sports, scientific, educational or entertainment broadcasts, including broadcasts of events, live streaming via the internet, the supply of distance learning services, and services of any equivalent type that have a similar purpose and mission. The growth of e-commerce sector picked up even further in the wake of coronavirus pandemic with UAE residents on average spending over Dh6,000 a year. “In light of the increasing importance of the e-commerce sector, clear mechanisms for procedures have been identified. Value-added tax, as it relates to the supply of goods and services through electronic means, contributes to supporting the activities of this vital sector, which depends on a locally developed digital and technological infrastructure,” said Khalid Ali Al Bustani, director-general of FTA. It added that taxable persons should charge VAT to customers when supplying taxable goods or services at the standards rate of 5 per cent or at a rate of zero per cent where law permits. If the supplies are exempt from tax, these supplies are not treated as a taxable supplies and therefore no VAT needs to be charged on these supplies. As per the Article (18) of Decree Law, a non-resident shall register for tax and makes supplies of goods or services, there is no threshold limit applicable to the non-residents. “This means if a consumer in the UAE buys a service/product from an online platform (social media, e-commerce, education, games, arts, fashion, music or any other services), the non-resident shall register for the VAT within the stipulated time and comply with local tax legislation,” As per the UAE legislation, the place of supply of electronic services shall be UAE if the use and enjoyment of the supply is within the country. Pursuant to Article (31) of the Decree law, provision of electronic services are subject to tax.

Brief overview of this user guide
Brief overview of this user guide

This guide is prepared to help you navigate through the Federal Tax Authority (FTA) website and successfully complete your Value Added Tax (VAT) vat registration form. It is designed to help you: create an e-Services account with the FTA (you will need to do this before you can register for VAT); provide accurate answers to the questions on your VAT registration form by explaining what information you are required to provide; and understand the icons and symbols you might see as you complete the registration form. You should find that setting up an e-Services account is similar to setting up other online accounts. The VAT registration form is also designed to be straight-forward and wherever possible it will auto-complete information for you. If you need help setting up your e-Services account or have questions on specific fields in the VAT registration form, please contact us.

What is VAT? Consultancy Services are required for your business in the UAE?

What is VAT? Consultancy Services are required for your business in the UAE? The United Arab Emirates introduced a new indirect tax known as value Added Tax (VAT) at the beginning of January and has the rate of 5 percent on services and goods. The VAT policy adopted in the GCC countries may expand the economic scope of countries, by integrating another source of revenue following the crisis in oil. The new revenue source is intended to be utilized for top-quality public services through the shift towards a more sustainable consumption model. It is also designed to decrease the dependence of the government on hydrocarbons, including oil, as sources of revenue. Learn more about the necessity of VAT consulting services for businesses in the UAE. What is VAT? Value Added Tax, also known as VAT is a tax that is imposed on the purchase or use of services and goods at every place of sale. The people who pay the cost will eventually become the final consumer. With the assistance of the Government, companies are required to collect and pay the tax. A taxable supply is the distribution of services or goods by an organization located in the UAE which is taxed at 5 percent or zero percent. Imports are also considered when they are taxable as a sale of the items or services would be tax-deductible in the UAE. Services offered via VAT Consultants The services offered by VAT consultants are contingent upon the type of business. The archetypal duties of a VAT consultant consist of: Control and compliance with VAT Reduce VAT liability by identifying risk and the right solutions. Find potential tax planning possibilities File VAT and pay. Record and Organize Data Accounting & Bookkeeping. Purveyor organization. Client-facing organization. VAT Registration Process The basic idea is that a company could choose to use one of the two kinds of VAT registration procedures that is mandatory registration and voluntary registration. A qualified VAT advisor can help businesses to be VAT registered based on the value of all their taxable imports and supplies. The threshold for compulsory registration of a company is AED 375,000 The threshold for registration by the voluntary business will be AED 187,500. However, the threshold for mandatory registration cannot be applied to foreign-owned companies. How do I register for VAT? After registering an account companies can then register for VAT using the e-Services portal available on the FTA website. The FTA has created a 24-hour user-friendly system for filing Tax returns as well as paying tax through tax-paying via the e-Services portal. Engaging a trustworthy VAT expert in the UAE will help you to efficiently complete the numerous VAT-related activities including VAT accounting and VAT registration and deregistration of VAT, keeping correct documentation for VAT return filing and tax consulting tax accounting and VAT impact studies, and more. With a greater understanding of the processes of VAT. They are aware of the correct method to use for UAE tax registration. This is why we are an excellent option for businesses to ensure compliance with the VAT laws of the UAE. Responsibilities of VAT Consultants The main duties of a VAT consultant can differ from one case to the next. Some of the primary duties of a tax consultant comprise: Maintain a proper book of accounting and records of a company Complete VAT submission requirements to ensure VAT compliance UAE Federal Rules Why should you employ an expert in VAT? A lot of businesses aren’t aware of what rules and guidelines apply to the process that governs VAT calculation as well as the method of paying. Consulting VAT consultants can help solve complicated formulas, complex figures, and calculations. Other benefits of hiring VAT consultants are:   Greater Know-how: The most competent VAT experts have deep knowledge of VAT-related regulations, procedures, and regulations. VAT specialists who are knowledgeable about VAT laws and rules are able to help taxpayers understand the various rates of VAT and the proper tax calculation. accuracy: Unlike our in-house accountant, VAT consultants put in the extra effort to ensure that each VAT tax file is precise. Experiential Experience in Industry The qualified VAT expert with many years of experience can assist you in making sure that you avoid the most common mistakes made in the VAT process, filing returns, and other similar actions. Efficiency: Employing a reputable VAT expert can help you reduce the amount of time that you have to spend on VAT analysis, assessments, and risk analysis for your company. Risk reduction: A well-trained VAT advisor is equipped to manage all types of business risks. They will be able to suggest the most effective options to minimize the risks that are associated with VAT. Improved method of financing: Financial assessment, calculations, and evaluations require careful consideration. Therefore, it is always recommended to get advice from experts in VAT to get advice on finances. The VAT Consultancy Services in UAE As one of the top VAT consultancy services in the UAE, We provide many VAT-related services, including: VAT considered Accounting & Bookkeeping Review of Purchase Invoices Examining Sales Invoices to ensure compliance with FTA Rules and Regulations Internal VAT Audit Assistance with filing your VAT Return Assistance in the process of paying to FTA Tax consultancy services VAT registration VAT Training Revenue Report Preparation and Preparation for FTA submission  

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