HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Minister of Finance calls on all businesses to comply with the executive regulations of the Federal Law No. (8) of 2017 on VAT and register online via the Federal Tax Authority’s website.

Through the website businesses will receive a tax identification number, and it will help avoid any administrative penalties for violation of tax laws in the UAE, said a statement.

HH Sheikh Hamdan urged businesses to expedite and complete the registration process and update their data, to ensure full preparedness and compliance with the tax system as it will come into effect on January 1.

He said: “Applying VAT plays a key role in building a sustainable knowledge economy, contributing to the infrastructure for the future development, strengthening public services, and enhances the global competitiveness of the UAE.”

As the entity responsible for the legislative aspects of the tax system in the UAE, and to raise awareness around VAT, the Ministry of Finance announced details of the executive regulations for the Federal Law No. (8) of 2017 concerning VAT, and the Cabinet resolution No. (40) of 2017 on Administrative penalties for violations of tax laws in the UAE.

HH Sheikh Hamdan added: “The Ministry of Finance works in coordination with the Federal Tax Authority to ensure an easy application process for the all VAT related tax procedures. We also put great emphasis on supporting all business sectors in the country as they go through the process of VAT related change, allowing them to apply VAT in a simplified manner through accessible and user-friendly digital systems.”

“These measures have been implemented to avoid imposing fines on affected companies due to non-compliance with tax regulation, and to support them in their financial activities,” he added.

VAT will be applied in accordance with the unified VAT Agreement for the GCC, which clarifies provisions relating to commercial transactions between GCC States. It also provides a common agreement on certain provisions such as the basic rate of value added tax and the registration limit, and gives countries discretion to choose treatment in certain sectors where it does not affect intra GCC trade.

Companies and business sectors should seek their internal consultancy to determine VAT transactions on services and supplies provided in the course of their business as from January 1, to ensure the accuracy, completeness and quality of invoices submitted, and transactions related to VAT on invoices related to services and supplies.

Both the Ministry of Finance and the Federal Tax Authority have held a series of workshops aimed at raising awareness on the tax system and the role it plays in building a sustainable knowledge economy for future generations.

The Federal Tax Authority has also opened the registration process through its website, to provide information to taxpayers, visitors and all members of the community around the clock, it stated. – TradeArabia News Service