Refer link for list of Designated Zones in UAE for purpose of UAE VAT per Cabinet Decision No 59 of 2017 on Designated Zones.
KINDLY FOLLOW THE LINK
VAT implications on the following relating to the client companies would be discussed:
1) Types of VAT rates
2) Input tax and output tax concept
4) Time of incurrance of VAT
5) Contracts with customers and suppliers
6) Tax invoices format
7) Samples/ gifts/ complimentary
8) Deemed supply
9) Adjustments to invoices
10) Import Purchases from suppliers
11) Local purchases (Material and expense suppliers)
12) Capital asset purchases
13) Impact on cash flows and profitability
14) Impact on IT systems
15) Related party transactions
16) Additional accounting heads / chart of accounts to be maintained
17) Reporting requirements to federal tax authority
18) Time line of reporting and payment of VAT
19) Period for maintenance of records
20) Documents required for VAT registration.
21) Any other areas
Per article from Khaleej Times dated 8th October 2017:
All businesses with a turnover exceeding AED 150m should apply for VAT registration before 31st October 2017.
All businesses with a turnover exceeding AED 10m should apply for VAT registration before 30th November 2017.
All businesses that must be registered by 1st January 2018 should submit their VAT registration applications before 4th December 2017 to minimize the risk of not being registered in time for the beginning of the new year.
Refer link http://www.tax.gov.ae/legislation.aspx
for following regulations on Excise Duty issued by UAE
Cabinet Decision No. (37) of 2017 on the Executive Regulation of The Federal Decree-Law No (7) of 2017 on Excise Tax;
Cabinet Decision No. (38) of 2017 on Excise Goods, Excise Tax Rates and the Method of Calculating the Excise Price.
The Firm is pleased to announce formation of UAE VAT advisory division. The division shall be headed by its partner Mr. Pratik Sangani.
For complete text of the law refer to the link:
Federal Decree Law No. (8) of 2017 on Value Added Tax has been issued, which outlines the tax scope, rate, responsibility for tax, supply of goods and services in all cases, including supply in special cases, supply of more than one component, supply via agent, supply by government entities and cases of deemed supply etc.
Kindly find attached link in Ministry of Finance – UAE website wherein attached is the Federal Law No. 7 of 2017 – Tax Procedures in UAE. The Executive Regulations relating to Tax shall follow in due course.
The FTA may perform the audit at its office or the place of business of the person or any other place where they conduct business, store goods or keep records, in which case, the person must be given a prior notice of at least five business days.
While conducting a tax audit, the tax auditor may ask for original records or copies thereof, or take samples of the goods, equipment or other assets available at the person’s place of business
The tax audit will be conducted during the official working hours of the authority. The Director General may, by way of exception, issue a decision to conduct the audit outside regular hours if necessary.
The authority may order a re-audit if new information surfaces that might impact the outcome of the tax audit.
PROTECTING TAXPAYERS RIGHTS
The new law has granted the right to audited person to request the tax auditors to show their professional identification cards; obtain a copy of the tax audit notification; attend the auditing procedures that take place outside of the authority’s headquarters; and obtain copies of any original paper or digital documents removed or obtained by the FTA during the tax audit.
The authority must issue a tax assessment to determine the value of payable tax and serve it on the taxable person within five working days of its issuance in any of the following cases:
(i)if the taxable person fails to apply for registration within the time frame specified by the tax law; (ii) if they fail to submit a tax return within that time frame; (iii) if they fail to pay the tax stated as payable on the submitted tax return before the deadline; (iv) if the taxable person submits an incorrect tax return; and (v) if the registrant fails to calculate tax on behalf of another person when they are obligated to do so by the tax law.
Gulf News dated 1 August, 2017. Refer below link
The Law defines the role of Federal Tax Authority and obligations under tax compliance
The Tax Procedures Law also establishes the register of tax agents who may interact with the FTA on behalf of taxpayers, specifies the basic requirements for appointing tax agents, and sets the standards for maintaining confidentiality by the authority as well as its officers.
The law requires any person conducting any type of business to keep accounting records and commercial books, as well as any tax-related information as determined by the Law.
Tax returns, data, information, records and documents must be submitted to the authority in Arabic. The FTA may, however, accept documents in any other language, as long as the person provides a translated copy in Arabic at their expense and responsibility, if so requested.
Registrants must include their Tax Registration Number (TRN), in all correspondence and transactions with the authority or with others. They must also inform the authority by filling the form of any circumstance that might require the amendment of information related to their tax record within 20 working days of the occurrence of said circumstance.
Each taxable person must also prepare tax returns for each tax period and for each tax while being registered. They must then submit the tax returns to the authority and pay any payable tax as specified in the tax return or any tax assessment within the time limit. The authority reserves the right to turn down any incomplete return.
The law mandates that a register of tax agents be established at the authority, which will hold files for each agent documenting his/her conduct. It is not permitted for any person to practise the profession of a tax agent in the UAE unless he/she is enrolled in the register.
Source: Gulf News dated 1 August, 2017. Refer below link