Filing Tax Return
Below are few things to remember while filing tax returns:
- VAT will be due in the end of each month or quarter. Within 28 days of the due date, the VAT return must be filed, if it is a weekend the deadline will be extended to the 1st following working date.
Challenge The FTA decision
Sometimes FTA might conduct tax audits, and ask you to pay more tax. In such cases if you feel you were unfairly charged more tax, you can challenge the Federal Tax Authorities decision.
There are two types of penalties which can be imposed for failing to comply with the below conditions respectively :
1.Intended to address noncompliance.
What is supply?
What is supply?
–If it meets the following requirements it is a supply in UAE:
- Provides Goods or Service
- In UAE
- For Some Consideration – i.e. Money or Kind (inclusive of VAT)
- By a Person
Time of supply – UAE VAT
In this blog we are discussing what is the time of supply, its importance and some of its special rules with respect to UAE VAT. The time of supply is normally the earliest of the following: –
Administration of VAT – FTA:
Federal Tax Authority or the FTA is a body formed by the government to administer all the taxes in UAE (starting with VAT & excise duties).
Some of the responsibilities of the FTA will include :-
Categories of VAT
Categories of VAT:
It is of utmost importance that the companies are aware which products they offer fall in which categories of VAT.
Once the products are categorized companies should treat each of them differently for example:-
Reverse Charge Mechanism
When goods are imported into the UAE, the place of supply is UAE. By this logic the exporter should pay VAT, however the exporter is not registered in the UAE.
So, in this case the importer must consider it as its own VAT
Special VAT Rules
Here are some of the special VAT rules that we need to be aware of:-
Cut off period
When VAT is introduced companies should also take special care to decide whether a product or supply sold fall under which period, post or prior VAT. Special rules will be applied here to decide
What should we do when VAT comes into effect?
Register for VAT
The taxable person or the legal representative has to register at the Federal Tax Authority. The FTA will issue a Tax Registration Number (TRN) for each taxable person