Update on De-Registration From VAT in UAE
The FTA (Federal Tax Authority) has recently cleared concerns about the conditions and procedures regarding de-registration from VAT, since it’s implementation in 2018. This is especially important for smaller businesses that are nearer to the tax threshold, as an administrative fine is liable to the firm is this law is not complied with.
First year Impact of VAT in UAE
At the end of one fruitful year of implementation of VAT, let’s go back and see how VAT affected the people in UAE. VAT or Value Added Tax is the tax levied on the consumption of goods and services at each point of production. The end users finally bear the charge and businesses gather the same on behalf of the government.
Clarity on emirates wise classification of sale
For the purpose of filing for VAT, sales will have to be classified on the basis of each emirate.
VAT on Constructing your own house
All the construction related input VAT can be reclaimed if :
- The individual is a UAE national.
Warranties – VAT
What is a warranty?
A guarantee issued by the retailer or manufacturer to the consumer, promising a repair if necessary within a specified period time. This blog is briefly about how warranties are effected by VAT implementation.
Profit Margin Scheme
When second-hand goods are purchased from a non VAT registered user by a VAT registered user, purely for the purpose of resale, the VAT registered user can include the VAT on the profit margin.
Zero-rating Transport services
When goods are exported out of UAE they are Zero-rated. However, the following services related to international transport are also zero-rated.
Businesses that satisfy certain requirements provided by the legislation (such as being under the same ownership and located within the same GCC country) will be able to register
The provisions of the newly issued federal law on taxation has authorized the Federal Tax Authority (FTA) with the legal right to perform a tax audit on any business to determine their compliance with the provisions of the relevant laws.
- It is the procedure undertaken by the Tax auditor from FTA to inspect the commercial records of the taxable business, to ascertain the compliance to the tax laws.
* The taxable person or the legal representative has to register on the Federal Tax Authority online portal.
* The online process will be simple and take about 15 minutes.
* The FTA portal will open soon on voluntary basis, and Q4 will be a compulsory basis.