A VAT Administrative Exception is a mechanism which provides registrants with concessions / exceptions allowed by the Federal Decree-Law No. 8 of 2017 on Value Added Tax (“Law”) or Cabinet Decision No 52 of 2017 on the Executive Regulations of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (“Executive Regulations”) if difficult circumstances prevent them from following certain procedural aspects of the Law or the Executive Regulations. However, VAT and Excise Tax registration exceptions are not covered under this process. The registrant must submit the VAT Administrative Exception Request by email to specialexceptions@tax.gov.ae by himself or through…

A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed. If simple tasks are completed on time and correctly, VAT is not an expense to the company. VAT is a type of indirect tax, where you are allowed by the government to be an agent to collect and pass…

The first Value Added Tax (VAT) return provided the Federal Tax Authority (FTA) with a pleasant period for filing to ease reporting and regulatory pressure on businesses. All companies must log on to the website of the FTA and verify under their profile the tax period. The first VAT return period was given to some of the companies for one month, while the first VAT return was given to most of the companies for the first month. How to file VAT Return in UAE VAT returns should be prepared well in advance by a taxable person as he is expected…

Bookkeeping handles the recording of day-to-day financial transactions and information. Bookkeeping is key component of an accounting system that helps to retain every transaction and information relating to the organization where necessary. There are many ways that accounting and bookkeeping services can help your business; in fact, accounting and bookkeeping is mandatory for every organization to have a steady functioning of business. Bookkeeping outsourcing has become very essential part of every business in the current situation. Outsourcing of bookkeeping services in UAE will help you to maintain your existing clients and divert your focus to the core function of business…

VAT on e-commerce in the UAE is assessed based on the location of the seller and the receiver. Online sales will be subject to a 5% VAT in UAE. In the field of e-commerce, buying products from an electronic channel, such as a website or a marketplace, is referred to as a supply of goods. After the items have been imported, they are shipped to the receiver. The supply may take any of the following simple types, depending on the location of the source, the consumer, and the goods: (i)A supply made by a resident seller to a recipient in…

What Is Anti Money Laundering (AML)? Anti-money laundering (AML) applies to rules, legislation, and practices aimed at preventing suspects from passing off improperly acquired funds as lawful earnings. Anti-money laundering legislation can only apply to a small set of transactions and illegal behavior, but their consequences are far-reaching. AML laws, for example, force banks and other financial institutions that issue credit or accept consumer deposits to conform to guidelines that prevent money laundering. AML applies to activities in four categories Brokers and Real Estate Agents dealers of precious metals and gemstones Auditors Corporate service providers Compliance with Anti-Money Laundering and…

The UAE’s Federal Tax Authority (FTA) declared that any person or group in the country has the right to apply to reduce or seek exemption from the penalty imposed for violating the country’s tax laws. UAE VAT Fines and Penalty Relief UAE Government on April 28, 2021 issued Cabinet Decision No. 49 of 2021 significantly reducing the quantum of penalties across various categories of violations. The three key changes were: 1. Reduction in late payment penalty from 1 per cent per day to 4 per cent per month. 2. No late payment penalty on voluntary disclosure if tax is paid…

WHAT IS A TRN NUMBER? The abbreviation TRN stands for Tax Registration Number. The FTA – Federal Tax Authority – assigns TRN numbers to businesses that register for VAT. When a company’s annual VAT taxable products and services reach AED 375,000/-, it is needed to register for obligatory VAT. The TRN Number is a 15-digit (Numeric) number that is issued to businesses when they register for VAT in the United Arab Emirates. By law, this number must be included on all tax invoices, credit notes, VAT returns, and other tax-related papers produced by a specific company. Businesses and even the…