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Summary: Following the publication of the UAE Tax Procedures Law, online VAT registration will open mid-September 2017

The Tax Procedures Law

* Any person conducting any type of business to keep accounting records and commercial books, as well as any tax-related information for five years. * Records must include: annual accounts, general ledger, purchase ledger (including supplier invoices and payments), and sales ledger (including sales invoices and receipts).

* For VAT purposes, Excel is not acceptable. * Tax returns, data, information, records and documents must be submitted to the Authority in Arabic. The Federal Tax Authority (FTA) may accept documents in any other language, if they provide a translated copy into Arabic at their expense if so requested.

* Any person obliged to register for VAT must do so and must include their Tax Registration Number (TRN) in all correspondence and transactions with the Authority or with others.

* Each registered entity must also prepare and submit a tax return for each tax period for which they are registered.

Source: Federal Law No. (7) of 2017 for Tax Procedures

VAT Audits

* The FTA may perform a tax audit on any person to determine compliance with the provisions of the relevant laws, at its office or the place of business of the person (or any other place where they conduct business, store goods or keep records). The person must be given five business days' notice.

* The auditor may ask for original records or copies thereof, and take samples of goods, equipment or other assets available at the person's place of business.

* An audit will be conducted during the official working hours of the Authority. The Director General may 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. * The audited person has the right to: request to see the tax auditor's 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 audit.

Source: Federal Law No. (7) of 2017 for Tax Procedures

Online registration

* The registration with the FTA for tax purposes will begin in mid-September. * The registration will be conducted through e-services on the FTA's website. * The registration will commence first for blue-chip companies and companies that produce and import excise goods.

* Any person obliged to register for VAT but fails to do so will face penalties. Source: HE Khalid Ali Al Bustani, Director- General of Federal Tax Authority


* Mandatory registration threshold: AED 375,000.

* Voluntary registration threshold: at least AED 187,500.

* Voluntary in Q3 and compulsory in Q4.

* Documents required: ID, passport, trade licence, bank account information, articles of association

* Rules for Free zones have not yet been released.

Source: Federal Tax Authority

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Date:Oct 31, 2017
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