UAE VAT FAQ’s

How can someone join the Tax administration team in the UAE?

The people who are interested in working with the Tax administration team in the UAE are requested to visit https://www.mof.gov.ae/En/Pages/Careers.aspx, where he/she can see the list of jobs available and choose one of them as per the qualification. Desired applicants will have to fill have to complete all the required documents along with their CV and send it to fta_careers@mof.gov.ae.

How can someone access UAE Tax Law?

UAE VAT tax is in its final stage of getting implemented, and all the announcements regarding new tax laws will be made clear in front of press and details will be published on the official Ministry of Finance website, which is the primary source of information regarding it. You can bookmark the page and check it out frequently to stay up to date on VAT related information.

VAT Related FAQ’s

General FAQs comprises general questions relating to the VAT UAE such as how taxpayers have to pay taxes to the government, or is that VAT would enhance standard of living, which product and services are covered under VAT, the major distinction between VAT and Sales Tax, what is different VAT rates, the reasons why VAT has been implemented by UAE, the definition of VAT and Tax.

Business-related FAQs comprises certain basic question such, is that VAT will be applicable on goods that are exempted from custom duties, or is businesses entitled to provide all the information relating business activities in each of the Emirates, whether VAT will be levied on imports or not, will government entities be included under VAT, what business entities are required to prepare VAT, businesses must be required to maintain the financial records and accounting books under VAT reform, businesses whose annual turnover is more than AED 375,000 is entitled to register under VAT, registered businesses are entitled to file VAT returns on a regular basis on the duration of three months for majority of businesses.

Tourists Related FAQs includes queries such as foreign businesses will be entitled to claim for VAT i.e. the taxes they paid in the UAE. Yes, these foreign businesses are allowed to claim VAT as they encourage them to expand their businesses in Abu Dhabi and most of the countries also have VAT reform. Will tourist be liable to pay VAT in UAE? Obviously, yes as tourists have a significant source of income for UAE and they have to pay VAY while buying anything in UAE.

VAT Certificate FAQs queries include such as Registered Certificate is valid for one year from the date of registration made by the supplier, The validity of the audited financial accounts report is one year that consists the information of the current year along with the last year’s report, what individual required to submit the certificate? To submit the certificate individual must stay for 180 days as the resident in UAE, what types of documents and fees are required in the certificate.

Other FAQs comprises questions what are penalties in case of not filing VAT on time. The VAT Reform was implemented recently in UAE as the government has not declared penalties yet. Changing my business systems for VAT reporting will cost money. Can the government help? After the implementation of VAT in UAE, the government would provide guidance and education to the business entities to understand the VAT reform. Are there any groups (individuals or organizations) that will exempt from paying VAT? No, VAT is a large reform which won’t allow any special treatment to individuals. Would VAT influence the economic growth of UAE? It is strongly believed that VAT would enhance the revenue in UAE by diversifying revenues away from oil.