Guides and E-learning Modules on UAE Tax Laws

Guides and E-learning Modules on UAE Tax Laws

The Federal Tax Authority(FTA) has launched over 50 guides and E-learning modules for VAT regulations covering their implementation phase.

The director-general of FTA, Khalid Ali Al Bustani said The authorities issued the guides and e-learning as it covers modules like Registration for excise tax, value-added tax(VAT) and TAX group, import and export announcement, TAX return, storage keepers and included tax aspects.

e-learning modules spread awareness on UAE Tax laws

These guides and e-learning modules will provide the Federal Tax Authority(FTA) obtain accurate and extensive information, helping the promotion of tax traditional among various business sectors. Al Bustani called on businesses and specialists to benefit from these guides to raise awareness among stakeholders. e-learning modules provide the more information and knowledgeable awareness on the UAE Tax Law.

The FTA director-general said that Through the website, it provides videos that introduce the businesses and members of society with their authority, obligations, and methods for calculating taxes. The taxes and Authority provide pervasive information and guidance on tax legislation and procedures.

In the starting of the month, the FTA indicated businesses, registered in the VAT system, whose first tax period ended on January 31, 2018, that their VAT returns must be submitted February 28, 2018, but no later than the deadline.
Al Bustani also urged businesses execute with the tax procedures fixed in the FTA’s respective laws and regulations.

VAT on Real Estate – Impact On Residential & Commercial Buildings in Dubai, UAE

VAT on Real Estates, Residential Property, Commercial Building

The UAE Ministry of Finance, the UAE Federal, and Emirate governments provide many different public services, citizens, and residents.The commercial real estate is charged at standard rate of 5%.

We are expecting that businesses will be able to recover the VAT paid their VAT returns and the Government of UAE already provide online VAT Registrations for the VAT eligible businesses on the FTA website its required for all real-estate Business.Among the industries that will be affected by VAT, real estate sector is the major one.

In this article, we will try to understand the impacts of the new tax system in this industry.

Real Estate Definitions for VAT

Supply: Any sale, lease or transfer of rights of any property will be considered a real estate supply for the purpose of the tax. Read More

VAT Rates UAE 2018 – Standard, Zero, Exempt Rate in Dubai

VAT Rates in UAE

Federal Tax Authority (FTA) of UAE announced full VAT rate list for real estate, transportation, financial services sectors that are completely exempt from Value Added Tax.

The UAE and Saudi Arabia are the two member countries of GCC have been implemented VAT, whereas the remaining member countries are implementing the new reform over the coming years.

According to the Federal Tax Authority (FTA), Sectors such as education, healthcare, transportation, real estate, and oil and gas has been levied the zero-rated tax under VAT Reform. Several Government activities are kept out from the new tax reform (therefore not liable to pay the tax). Read More

Complete Guidance on VAT Return Filing online in UAE 2018

How to VAT Return Filing in online

As per the normal VAT standard, the returns are filed quarterly, i.e., once in 3 months, or annually in some cases. The VAT returns will be filed online on the official portal of the Federal tax authority. Businesses that are looking forward to making a smooth transition to the new tax system must get familiar with the return filing procedure under VAT in Dubai. In this article, you will learn the same. Read More

Tax Invoice Under VAT In United Arab Emirates and Format

Tax Invoice Under VAT In UAE

Tax Invoice is a written or electronic archive in which the taxable person collects complete information of taxable supplies made in a financial year. The Federal Law Number (8) of 2017 regarding the Value Added Tax (the VAT Law) establishes the necessary elements required for a Tax Invoice and the Executive Regulation Number 52 of 2017 concerning regulations on VAT (the VAT Regulation).

It is important that all taxable activities issued under the VAT administration cover these conditions. If a Tax Invoice generated don’t fit the required conditions, it would expedite an Administrative Penalty. Farther, organizations should accept measures to guarantee that Tax Invoices issued under VAT are exact and absolute.

As per the VAT law in UAE, a Tax Invoice is to be generated by all registrants for decidable supplies to other registrants, where the provisions exceed AED 10,000 (UAE Dirhams ten thousand).

There exist two types of tax invoices; a detailed VAT invoice and simplified VAT invoice. Coming to the simplified VAT invoice, it is for supplies less than the specified amount. It is generated when the clients are retail purchasers and not require to provide a VAT number. This kind of receipt is for supermarkets and retail industry.

Detailed VAT invoice is meant for supply more than the predestined sum. This kind of revenue is for wholesalers and merchants who manage in higher amounts.

1) A Simplified Tax Invoice Contains The Following Details:

  • “Tax Invoice” necessarily offered on the invoice.
  • It consists of Name, Tax Registration Number (TRN), and Address of the Registrant.
  • According to the Article (25) of the VAT law, the date should be present on the tax invoice concerning the goods on which the company or the taxable person transfers the products.
  • According to the Article (27) of the VAT law, an explanation of the Goods or Services supplied should be present on the tax invoice.
  • It contains detailing of the total Tax amount charged.

2) A Detailed Tax Invoice Contains The Following Details:

  • The words ‘Tax Invoice’ apparently offered on the invoice.
  • The name, TRN, and address of the recipient.
  • The name, TRN, and address of the Recipient where he is a Registrant.
  • A unique Tax Invoice number showing identification of the Tax Invoice and the order of the tax Invoice in any systems of invoices should be shown on the invoice.
  • The date on which the Tax Invoice is issued.
  • Mentioning of the date of supply in case it is different from the date of the Tax Invoice which is issued by the company.
  • A detail of the Goods or Services supplied.
  • The unit price of goods or services, Tax rate, the supplied quantity, and the amount payable articulated in AED.
  • The amount of any discount if it is applicable.
  • The gross amount payable displayed in AED.
  • The Tax sum payable displayed in AED together with the rate of exchange employed where the currency is diverse from the UAE Dirhams.
  • Article 59 of the VAT Regulations gives a total format of the Tax Invoice. The supplier can plan its tax invoice and organize as per the requirements, yet needs to explain that the tax invoice covers all the data required as mentioned above.

UAE Tax Invoice Format

A sample format of a Tax Invoice is available. The compulsory information is required to fill in a Tax Invoice. It is necessary for the recipient to pay tax in relation to Tax Invoice regarding a supply. It is also vital that the recipient should answer for a tax invoice.The Tax Invoice is covered under Article 48 of the VAT Law.

tax invoice format

Many businesses in UAE, excluding retail businesses, would be working on supplies for which Tax Invoice is to be generated. As per the compulsory information required in any Tax Invoice issued by registrants has been determined in the VAT law, it is also important to consider that all invoices generated under the VAT regime follow these prerequisites. If Tax Invoices generated do not consist the important details, it could create an Administrative Penalty.

So, it would be helpful for all businesses to operate on a software which would automatically collect the information necessary in a Tax Invoice, inform the user if any compulsory details are not provided in the Tax Invoice, issue the Tax Invoice soon and amazingly, keep updated regarding all the information that is necessary to be provided in a Tax Invoice. Securing that Tax Invoices are generated properly by suppliers, it is vital for the recipient of the supply as well.

The Tax Invoice is taken as the base on which the recipient can request input tax deduction on the supply. Therefore, businesses require being aware of the Tax Invoices issued under VAT as they are precise and complete.

Download Tax Invoice Format

UAE VAT Tax Invoice Format in Doc

UAE VAT Tax Invoice Format in PDF

UAE Government Announced VAT Rates 2018

UAE Government Announced VAT Rates

The items or supplies to be levied by Value Added Tax (VAT) from 1st January 2018 has been announced by the Federal Tax Authority (FTA). The authority has announced the VAT rates of several items or sectors. Sectors such as healthcare, oil, and gas, transportation, real- estate will be levied with the zero-rated tax under VAT Reform.

Supplies such as transportation, real estate, and financial services will be exempted from Value Added Tax (VAT). However, government services will be kept outside of the new taxation system. These comprise services that are exclusively performed by the government authorities or performed by non-profit organizations, and no- competition with the private sector. Read More