Friday 23 March 2018

UAE firms urged to use VAT registration fine waiver

ABU DHABI, 17 days ago

UAE’s Federal Tax Authority (FTA) has urged businesses to benefit from the registration penalties waiver until April 30, clarifying that the decision only covers late registration penalties and that taxable businesses are still required to settle all the taxes due from January 1.

FTA director-general, Khalid Ali Al Bustani, called on businesses to benefit from this extension granted by the Authority and approved by the Board of Directors’, which takes into account the lack of readiness among businesses when value added tax (VAT), first went into effect, reported Emirates news agency Wam.

"The decision reflects the Authority’s commitment to guiding taxable persons and ensuring their full compliance to avoid administrative penalties," he explained, urging businesses to register immediately to avoid missing the 30th April deadline.

According to Federal Decree-Law No. 08 of 2017 on Value Added Tax, as well as its Executive Regulations, taxable persons are required to retroactively settle the taxes due since the law went into effect on 1st January 2018, the FTA Director-General added.

Al Bustani praised the high level of commitment among businesses during the last few months since the launch of electronic registration process, stressing that the Authority is committed to adopting the highest standards of transparency and accuracy in implementing tax procedures, where the FTA was keen to provide guides, infographics and publications through its website – where it also published the tax laws. The Authority has also produced educational short videos and e-learning modules to explain tax procedures to taxable businesses and ensure compliance.

"Businesses have become highly aware of the importance of the tax system and the need to comply with tax procedures," he continued, adding that the success of the system is a joint responsibility that requires the cooperation of all parties, including the government, business sectors and the society at large.

"The Federal Tax Authority is continuously communicating with all businesses to identify their views and discuss ways to overcome any obstacles they may face in order to ensure the effective and seamless implementation of the tax system, and avoid any disruption to their activities," Al Bustani said.

The Federal Tax Authority clarified that any natural or legal person conducting business in the UAE is required to register for VAT if their taxable supplies exceeded Dh375,000 ($102,000) in the last 12 months or are expected to exceed such threshold within the next 30 days. Taxable Supplies are identified as all supplies of goods and services made by a Person that are not exempt, in addition to imported goods and services.

Tags: UAE | FTA | VAT |

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