6TAX OBLIGATIONS For Registrants for VAT
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6 TAX OBLIGATIONS For Registrants for VAT
Dear VAT registrant, You have just registered with the Federal Tax Authority (FTA) for Value Added Tax, which serves as a key step in achieving tax compliance. This step entails a number of tax obligations, which registrants must meet. This manual details six obligations, which registrants must meet. For more information, please visit the FTA’s website www.tax.gov.ae, as it offers guides, infographics and legislation to clarify all the requirements. If a case requires tax consultancy services, you can always use an approved tax agent from the FTA’s Tax Agents Register to help you achieve tax compliance. You are part of the success of the tax system in the UAE, and one of the pillars of the UAE’s economy. The tax collected will be used in providing top-quality services and ensuring the wellbeing of future generations. FEDERAL TAX AUTHORITY
IMPORTANT CONTACT THE
INFORMATION FEDERAL TAX AUTHORITY
EXEMPTED SUPPLIES
eservices.tax.gov.ae
- Financial services including life insurance, life reinsurance and financial
services that are not offered for an express fee, discount, commission,
rebate, or similar type of charge.
The Federal Tax Authority is proud to offer is fully-digitised services, including
- Issuance, allocation, or ownership transfer of equity security
registration procedures, tax return submission, and settlement of payable
or debt security.
taxes, as well as refund, reconsideration, and clarification requests, through its
- Sale or lease of residential buildings, excluding the first supply. e-Services portal eservices.tax.gov.ae. These online procedures eliminate the
- Bare lands. need to provide any printed documents or visit the FTA across all stages of
tax compliance.
- Local passenger transport.
ZERO-RATED SUPPLIES
- Export of goods and services.
- International transport of goods and passengers.
- Certain means of transport, such as trains, sea vessels, and aircraft.
- First supply of residential buildings (lease or sale).
- Air or sea vessels designed for rescue and assistance, means of www.tax.gov.ae
transport designed for commercial transport of passengers or goods,
except for recreation, pleasure or sports.
- Certain precious investment metals. The FTA also publishes all relevant legislation, guides, infographics and
- Necessary and preventive healthcare services and associated goods e-learning modules that Taxable Persons can use to learn about their tax
and services. obligations and how to meet them.
- Certain educational services and associated goods and services.
* Supply: The supply of goods or services by a Person conducting business in the UAE.
* Exempt Supply: The supply of goods or services by a Person conducting business in the UAE, where no tax
is payable and no input tax is recoverable unless stipulated in the provisions of the relevant Decree-Law.600599994
TAX SUPPORT
If you have any enquiries where the answer is not readily available through The FTA website provides you with a range of support tools to help you
other channels of communication with the FTA, please call the above number understand and fulfil your tax obligations.
to speak with the Contact Centre team, which is prepared to answer all
queries and provide you with any information you require.
TAX AGENTS REGISTRY
@UAETAX A Tax Agent can assist a Taxable Person with their tax obligations, in
accordance with a contractual agreement between the Person and the Tax
Agent, and with the Tax Agent’s duties as stated in the relevant tax legislation.
You can follow us on Instagram, Twitter, YouTube, and LinkedIn to learn You can reach a suitable Tax Agents in your area by clicking on the ‘Tax
about FTA events and latest news. Support’ tab on the website and selecting the ‘Registered Tax Agents’ tab,
then using the search filters to identify the most suitable tax agent for your
needs.
Federal Tax Authority
TAX ACCOUNTING SOFTWARE
VENDORS LIST
This list provides you with information on the most prominent FTA-approved
Tax Accounting Software Vendors.1 KEEP
YOUR
RECORDS
TAX RECORDS MUST BE KEPT FOR AT LEAST
5 YEARS; THE TIME-SPAN MAY DIFFER
DEPENDING ON THE NATURE OF YOUR BUSINESS.
AS FOR ALL BUSINESSES REGISTERED AND NON-REGISTERED
FOR VAT, YOU MUST KEEP ACCOUNTING RECORDS AND ALL
DOCUMENTS RELATED TO YOUR BUSINESS ACTIVITIES.
THESE DOCUMENTS AND RECORDS INCLUDE:
-
-
-
-
Balance sheet Statement of Profit or Loss and Other Comprehensive Income.
Records of salaries and wages.
Records of fixed assets.
All relevant inventory records and records of inventory checks
(including quantities and values) at the end of any Tax Period.
FOR REAL ESTATE OWNERS, THE RECORDS THAT
MUST BE KEPT ARE
FOR A TAX REGISTRANT, YOU MUST KEEP
THE FOLLOWING: 1 Sale/purchase contracts
2 Maintenance service invoices
- Records of all supplies and imports of goods and services. 3 Invoices with concerned entities
4 Leasing contract
- All Tax Invoices, credit notes, and alternative documents
received. 5 Title deed
6 Receipts for land and property department fees
- All Tax Invoices, credit notes, and alternative documents
issued.
FOR NON-EXECUTIVE DIRECTORS, THE RECORDS THAT
- Records of goods and services that have been disposed
of or used for non-business activities, including VAT
MUST BE KEPT ARE
amounts paid on such goods and services.
1 Decision to appoint the member
- Records of goods and services for which Input Tax was 2 Decisions on rewards for members
not deducted. 3 Reward vouchers
- Records of exported goods and services. 4 Receipt or proof of receipt of rewards
- Records of adjustments or corrections made to accounts
or Tax Invoices. FOR PERFORMERS AND SOCIAL MEDIA INFLUENCERS,
THE RECORDS THAT MUST BE KEPT ARE
YOU MUST ALSO KEEP VAT RECORDS OR ACCOUNTS 1 Receipts of money transfer
THAT INCLUDE ANY OF THE FOLLOWING 2 Contracts
3 Invoices
- Payable output tax on taxable supplies. 4 Receipt of payment
- Payable output tax on taxable supplies, calculated using the
Reverse Charge Mechanism.
- Payable output tax after making corrections or adjustments.
- Recoverable input tax on supplies or imports.
- Recoverable input tax after corrections or adjustments.2 SUBMIT YOUR
TAX RETURNS
ON TIME
The FTA usually allocates 3 month Tax Periods (quarterly), however, it may
specify shorter or longer Tax Periods for registrants, if it deems it necessary.
You will be required to submit your Tax Return no later than the 28th day
from the end of each Tax Period, or on the following working day if the
TO SUBMIT YOUR TAX
RETURN, KINDLY
FOLLOW THESE STEPS
1
Access the e-Services portal on the FTA website
(eservices.tax.gov.ae), and go to the ‘VAT’ tab, where you can
access your Tax Returns. Go to the ‘VAT201 Tax Returns’ tab
and click on the ‘VAT201 New VAT Return’ tab.
corresponding date falls on an official holiday or weekend.
EXAMPLES OF TAX PERIODS 2 Complete the form: Fill in the sales and other outputs,
as well as expenses and other inputs, such as
- Monthly
1 Values without the VAT
- Quarterly (from the beginning of January to the end of March)
- Quarterly (from the beginning of February to the end of April) 2 VAT rate value
- Quarterly (from the beginning of March to the end of May)
- Biannually (from the beginning of January to the end of May) Based on entered date, the system will calculate the payable
- Biannually (from the beginning of June to the end of December) or recoverable tax for the specified Tax Period.
In all cases, Tax Returns must be submitted within the periods
Submit the Tax Return: Carefully check all information entered in the
specified by the FTA, even if no taxes are due for said period.
Tax Returns must be submitted through the FTA’s online portal, 3 form and make sure you complete all fields and recheck the
declaration. After checking all information, press ‘Submit’.
and must include the following:
- The value of supplies subject to the base rate payable provided during
the Tax Period and payable output tax. 4 Settle the payable VAT through the ‘My Payments’ tab, and make
sure payment is made within the specified deadlines.
- The value of supplies subject to the zero-rate provided during
the Tax Period.
- The value of provided supplies exempted in the corresponding
Tax Period.
- The value of supplies subject to the Reverse Charge received during
the Tax Period.
- The value of expenses incurred during the Tax Period, if you wish
to claim the input tax and recoverable tax values.
- The sum of the payable tax and recoverable input tax during
the Tax Period.
- Payable or refunded tax for the Tax Period.3 SETTLE YOUR
PAYABLE TAXES
ON TIME
You will be required to settle any payable taxes on the Tax Return submission date,
i.e. no later than the 28th day from the end of each Tax Period (or the following
working day if the corresponding date falls on an official holiday or weekend). It is
important to pay your taxes before the due date and avoid delaying payment until
the last day, in order to stay ahead of any circumstances that may delay the payment
reaching the FTA (e.g. the bank may require 2 or 3 working days to complete
the transfer).
4 SETTLE PAYABLE
TAXES THROUGH
OUR APPROVED
CHANNELS
THE FTA PROVIDES VARIOUS PAYMENT CHANNELS THAT MEET
THE NEEDS OF ALL REGISTRANTS TO SETTLE THEIR PAYABLE
TAXES. THESE CHANNELS INCLUDE:
5 YOU CAN REQUEST
A TAX REFUND,IF
YOU ARE ENTITLED
Once you submit a Tax Refund Application to the FTA, the Authority
will notify you of the approval or rejection thereof within 20 working
days. In certain cases, the FTA will notify you that your application
may take longer than usual to process for audit purposes.
- The UAE Funds Transfer System (UAEFTS), hosted by the UAE Central Bank,
where every registrant will be allocated a Generated International Bank Transfer
Number (GIBAN), enabling them to settle their taxes through a variety of flexible
means. This system entails no financial obligations and offers real-time transfer
of funds between bank accounts, enabling you to pay taxes through the branches
of around 77 banks, money exchange agencies and financial institutions across
the UAE. Payments can also be made using conventional bank cards.
- The e-Dirham Gateway via eServices - payment can be made via eDirham cards
or credit cards.6
“Tax Invoice”
ISSUE TAX INVOICES displayed
FOR ALL TAXABLE
TAX INVOICE
GOODS & SERVICES
PROVIDED OR SOLD Tax
ABC LLC
Street, Emirate, UAE Price
TRN 101234567890003
Registration includes
Number VAT
Item 1 2.50
(TRN)
Item 2 8.50
Item 3 12.00
Total before VAT 21.90
As a taxable person, you are required to issue valid Tax Invoices for each VAT incl. 1.10
taxable supply or goods or services. Please make sure the Tax Invoices Total 23.00
you issue meet the following criteria: Amount
SIMPLIFIED TAX
of tax
Date: 02/01/2018
charged
TAX INVOICE
INVOICE
- The words ‘Tax Invoice’ in clear writing
- The supplier’s name, address and the Tax Registration Number (TRN)
TAXABLE PERSONS MAY ISSUE SIMPLIFIED
- The receiver’s name, address, and TRN (if registered) TAX INVOICES IN ANY OF THE FOLLOWING CASES
- The serial or relevant Tax Identification Number (TIN) that helps identify
the Tax Invoice and its number in any number of invoices
- Issuance date If the recipient is registered for VAT
- Supply date, if it is different from the issuance date 1 If the recipient is not
registered for VAT 2 and the supply does not exceed
AED10,000
- Details of the supplied goods or services
- The unit price, quantity or size of supplies, payable VAT rate and payable
amount (in AED) for each good or service
- Any offered discount rates A SIMPLIFIED TAX INVOICE
- Total payable sum in AED MUST INCLUDE
- Payable tax in AED with the applicable exchange rate
- If the recipient demands the tax calculation, the invoice must contain said - The words ‘Tax Invoice’ in clear writing
details, as per Article 48 of the Law - The supplier’s name, address, and TRN
- Tax Invoice issuance date
ENSURE THAT THE PRICES OF GOODS AND SERVICES - Details of the supplied goods or services
ADVERTISED TO CONSUMERS INCLUDE VAT, WHETHER - The total consideration and tax charged.
IN FOOD MENUS, CATALOGUES, OR PRICE TAGS.You can also read
