26.9 C
Kuwait City
May 21, 2019
Gulflance
Home » UAE marks 500 successful days of VAT
Khaleejtimes Business

UAE marks 500 successful days of VAT

Tax came into effect on January 1, 2018, at a rate of five percent on the supply of most goods and services.

As the Federal Tax Authority, FTA, marks 500 days of the Value Added Tax, VAT, in the UAE, Khalid Ali Al Bustani, Director-General of the FTA, revealed that the rates of compliance with tax laws and procedures have increased exponentially among all taxable businesses.

The tax came into effect on January 1, 2018, at a rate of five percent on the supply of most goods and services.

In a press statement issued by the authority, Al Bustani added, “Compliance was made possible through the seamless, flexible, and clear procedures the FTA has rolled out through electronic, fully paperless systems that are among the most advanced of their kind in the world, underpinned by a sophisticated legislative environment that meets the highest standards in the field.”

“The FTA implemented an easy-to-use system for submitting tax returns and paying taxes via the e-Services portal, available 24/7 on the FTA’s official website,” he added.

Al Bustani said that as part of the authority’s efforts to manage and collect federal taxes, various tax refund mechanisms have been launched for legally eligible groups to recover VAT, including the Tax Refunds for Tourists schemes, of which nearly 8,110 transactions were processed on a daily basis.

Al Bustani also highlighted the success of the VAT Recovery on the Building of New Residences by UAE Nationals programme by saying, “The system has received more than 800 applications, 375 of which were approved, allowing applicants to recover AED14.74 million in taxes incurred on the construction of their homes.”

He continued, “As of April 2019, the FTA began implementing the VAT Refund Mechanism for Visiting Foreign Businesses, receiving a number of refund requests for taxes incurred in 2018 by foreign businesses.”

Stating that the UAE’s tax system has earned praise from experts and official entities in the UAE, the region, and the world, he said, “This is evident from the FTA’s participation in the Arab Regional Tax Forum, which Dubai hosted in March 2019, as well as its participation in April in the Belt and Road Initiative Tax Administration Cooperation Forum in China, where it showcased the UAE’s experience with implementing tax laws.”

These achievements and the tremendous progress the UAE has achieved in its tax systems have culminated in the country being elected to serve as the Vice Chairman of the Board of Directors of the Belt and Road Initiative Tax Administration Organisation, he said.

Stating that the number of users who registered for VAT has exceeded 300,000 companies, individuals, and tax groups, he asserted the FTA’s commitment to maintaining continuous communication with all parties concerned with the tax system via guides on VAT, e-learning programmes, educational short films, and infographics, in addition to public clarifications and continuously updated information on its website.

In terms of new campaigns, the FTA launched the tax invoice campaign in the first quarter of 2019, to promote the use of tax invoices in all business transactions in tandem with the “Tax Clinic” campaign launched in August 2018 to establish direct contact with business sectors, raise tax awareness among them and identify any obstacles they may be facing.

He also lauded the close cooperation with the Federal Customs Authority and local customs departments in order to link their systems with the FTA’s network, which contributed to the smooth implementation of the tax system and maintenance of the flow of foreign trade.

“The authority has spared no effort in assisting businesses to comply with tax regulations and procedures, organising several introductory and consultation meetings to prepare the private sector for dealing with the tax system,” he said in conclusion.

MORE FROM Nation

  • Abu Dhabi


    Tax came into effect on January 1, 2018, at a rate of five percent on … READ MORE

  • Dubai


    The authority has activated three new services on its portal for visa-… READ MORE

  • Dubai


    1,277 online reports were requests for assistance on hacked social… READ MORE

  • Ras Al Khaimah


    Sheikha Jawaher took to Twitter to express her concern over using the … READ MORE


Source link
Click here to read more news from @khaleejtimes

Related posts

India expected to drop from US list on currency manipulation

KT Mobile

North Korea says weapons drill was defensive, criticizes Seoul

KT Mobile

At least 12 injured in Egypt tourist bus blast

KT Mobile

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please spend a minute

Gulflance Poll

Which is worst social media?
Vote Now
close-link
Sign-up for exclusive content. Be up to date with Gulflance
Subscribe
Subscribe
close-image

You're currently offline