Category: Uncategorized

UAE VAT Refund – Need to attach Bank Account Validation letter

A bank account validation letter / certificate must be provided to the FTA. This letter must be issued and stamped by the bank and includes following details
(i) account holder name (must be the same as the taxable person’s name as registered with the FTA), (ii) bank’s name and address,
(iii) SWIFT/ BIC and
(iv) the IBAN.
The letter/ certificate shall be uploaded as an attachment to the refund application.

VAT ADVISORY – ALL SECTORS

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
3) Revenue
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

Federal Tax Authority mandated to Audit tax compliance in the UAE

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.

Source

Gulf News dated 1 August, 2017. Refer below link

http://gulfnews.com/business/sectors/government/federal-tax-authority-mandated-to-audit-tax-compliance-in-the-uae-1.2067024