Category: VAT

Amendments in VAT Decree Law – No. 18 2022 dtd 28.09.2022 Effective date: 1 January 2023.  Major changes in simple terms: Definitions – New definitions for Tax Evasion, Tax Audit, Tax Assessment, Voluntary Disclosure etc. Supplies outside the scope of VAT – Executive Regulations may stipulate any other supplies that are explicitly considered outside the scope of […]

Introduction of New Article 79 – Statute of Limitations for VAT Key changes are listed below in simple terms. FTA can conduct a Tax Audit/ Tax Assessment after 5 years in the following exceptional cases. When FTA notifies of the Tax Audit before the 5th  year, provided that the Tax Audit/Tax Assessment is completed within 4 […]

VAT basics What is VAT? Value Added Tax (or VAT) is an indirect tax. Occasionally you might also see it referred to as a type of general consumption tax. In a country which has a VAT, it is imposed on most supplies of goods and services that are bought and sold. VAT is charged at [...]

What is a tax audit/ Vat audit? Tax Audit is conducted by FTA and is one of the compliance checks or to verify a person’s VAT liability is accurate by way of examining various records which are maintained by the taxpayer. The government assesses a company whether they are following responsibilities that apply to their […]

Can we reclaim the Input VAT paid before registration? Yes. The recovery of input tax paid on goods, services and imported goods prior to the date of VAT registration is allowed, only if the goods and services were used to make supplies that give the right to input tax recovery upon tax registration. This implies […]

What is a residential building for VAT purposes? A residential building is a building or part thereof that is intended and designed for occupation by individuals, and mainly includes buildings which can be occupied by any person as main place of residence. It does not include: Any place that is not a building fixed to […]

The United Arab Emirates (UAE) has been one of the foremost appealing destinations for budding firms, mid-sized firms, and major corporations because of its 0% personal income tax as well as a multitude of business permits and operations permitted in the free zones and cheap import tariffs. The UAE government has always made an effort [...]

All businesses with an annual turnover of more than AED 375,000 are required to get themselves registered for VAT and submit the tax returns to the FTA (Federal Tax Authority). As long as the business is operating in the UAE, a valid VAT registration needs to be available with the business. However, there could be […]