TAXHELP Blog

VAT Tax inclusive prices

VAT Registered Businesses must display VAT inclusive prices to avoid penalties

The FTA has announced that all businesses subject to VAT and Excise Tax must display prices of goods and services inclusive of tax in order to avoid administrative penalties. The FTA called on consumers and service recipients in the UAE to exercise their rights and make sure that the prices displayed on items or services they buy display the total amount of tax charged. Continue reading →

VAT GIBAN payment

What is GIBAN and how does it make paying VAT and Excise Tax easier?

In a step to facilitate paying due tax, the FTA is introducing a new method of paying due tax as follows:

  • A GIBAN is a unique IBAN number that is given to every taxable person
  • A taxable person can make a fund transfer from certain UAE financial institutions using the GIBAN provided by the FTA
  • This payment method can be used for settling any outstanding VAT and Excise Tax amounts payable, including tax and penalties
  • This option should not be used for other payments such as Miscellaneous Payments

Continue reading →

VAT registration consulting

VAT registration deadline extended until April 30th

All UAE businesses which have missed the VAT registration deadline are exempted from penalties for another couple of months by the FTA.

The FTA gave these companies until April 30 to register for VAT to avoid administrative penalties as many of them were smaller companies, companies located in the free zones or branches of foreign companies. The FTA has already registered around 260,000 businesses and there’s been a steady increase in tax compliance ratios. “Overall response levels to the new VAT regime by all segments of society are very satisfactory”, Sheikh Hamdan noted.

If your business is not VAT registered yet, contact us today and we will make sure to get you registered before April 30th and help you avoid administrative penalties.

UAE VAT online shopping

Online shopping not VAT exempt

The FTA has clarified that online purchases are not VAT exempt and 5% VAT rate is applicable on all purchases made through online shopping portals just like any other purchase made through traditional outlets if the products purchased online are received within the UAE. Continue reading →

FTA relaxes VAT return dates

The FTA has changed the timeline for filing the first VAT return making it easier for companies to report and comply for VAT. This change is especially significant for SMEs which might have a harder time complying with VAT than larger companies due to less resources.

The VAT Return period has been relaxed and the FTA has provided the first VAT return period from January 1st up to May 31st and after that the filing returns will be made quarterly. The first return will need to be filed on or before June 28th and later returns from June 1st up to August 31st, September 1st up to November 30th etc. Continue reading →

UAE VAT Recovery Conditions

UAE Input VAT Tax Recovery Conditions

UAE VAT Implementation is right around the corner so we’re taking a look at another crucial thing for any business operating under the VAT regime to plan for – Input VAT Recovery.

Input VAT Tax is VAT levied on all taxable inputs of capital goods, raw materials, spare parts, services etc., which a business consumes or uses in its business. Continue reading →

UAE VAT Transitional Rules

UAE VAT Transitional Rules – Contracts/Early Invoicing and Payment

With the VAT regime coming to UAE in less than two weeks, we take a look at VAT transitional rules regarding contracts and early invoicing and payment.

Transitional Rules – Contracts

Where a contract is entered into prior to the effective date of the VAT law which concerns a supply made wholly or partly after the effective date of the VAT Law, VAT will be due on the supply taking place after the effective date of the VAT Law. If the contract does not mention VAT, the value of the supply stated in the contract shall be treated as inclusive of VAT. For example, the company selling the supply has to account for 5% VAT to the FTA on the value of the supply from the sum which is in the contract. Continue reading →

UAE VAT Date of Supply

VAT Date of Supply

The date of supply for a transaction is the date on which taxes are levied on the goods and services.

Basic tax points for goods:

  • Date of removal of goods (in case of supply of goods with transportation)
  • Date on which goods made available to customer (in case of supply not involving transportation)
  • Date of assembly/installation (supply of goods involving assembly or installation)

Basic tax point for services:

  • Date on which the performance of service is complete

Special tax point: If any of the following events take place before the basic tax point, it will be considered a tax point for accounting for VAT:

  • Payment is received
  • Tax invoice is issued

Tax point for supply of continuous services: In case of continuous services over a period of several months or years, the time of supply will be the earlier of the receipt of payment or the issuance of the tax invoice.

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