The process of registration for value-added tax (VAT) in the United Arab Emirates is still open, the country’s Federal Tax Authority (FTA) said in a press release on Sunday, one week after the new tax was introduced in the country on January 1.
VAT has been introduced at a standard rate of five percent in the UAE on an array of goods and services including food, clothes, cars and jewellery. Last month, the FTA urged businesses that are eligible to pay the new tax to register by no later than December 3, to give the authority time to respond to their registration applications.
But on Sunday, the FTA said in a media statement that the registration process is still open.
“The Federal Tax Authority has urged business sectors to complete all their registration requirements for Value Added Tax (VAT) purposes,” the FTA said in the press statement. It commended the "commitment and high turnout" of firms that had already taken part in the registration process, but said that this work is continuing.
"Other businesses that did not register to date should register immediately to avoid fines and legal proceedings,” it added.
The authority added that companies should make sure that all their submitted documents and information are correct to avoid incurring penalties.
The FTA said registration will be available 24/7 through its website, www.tax.gov.ae.
The FTA has previously said that companies that had not registered on time would not have received a Tax Registration Number (TRN) and could not charge customers (or reclaim) VAT, meaning that they would be responsible for paying the tax themselves.
Last week, the authority told consumers not to pay VAT to companies that had not registered with the authority and who could not display their TRNs on invoices.
For Zawya’s special coverage on the VAT coming to the GCC, click here.
(Writing by Yasmine Saleh; Editing by Michael Fahy)
(Yasmine.saleh@thomsonreuters.com)
Our Standards: The Thomson Reuters Trust Principles
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2018
VAT has been introduced at a standard rate of five percent in the UAE on an array of goods and services including food, clothes, cars and jewellery. Last month, the FTA urged businesses that are eligible to pay the new tax to register by no later than December 3, to give the authority time to respond to their registration applications.
But on Sunday, the FTA said in a media statement that the registration process is still open.
“The Federal Tax Authority has urged business sectors to complete all their registration requirements for Value Added Tax (VAT) purposes,” the FTA said in the press statement. It commended the "commitment and high turnout" of firms that had already taken part in the registration process, but said that this work is continuing.
"Other businesses that did not register to date should register immediately to avoid fines and legal proceedings,” it added.
The authority added that companies should make sure that all their submitted documents and information are correct to avoid incurring penalties.
The FTA said registration will be available 24/7 through its website, www.tax.gov.ae.
The FTA has previously said that companies that had not registered on time would not have received a Tax Registration Number (TRN) and could not charge customers (or reclaim) VAT, meaning that they would be responsible for paying the tax themselves.
Last week, the authority told consumers not to pay VAT to companies that had not registered with the authority and who could not display their TRNs on invoices.
For Zawya’s special coverage on the VAT coming to the GCC, click here.
(Writing by Yasmine Saleh; Editing by Michael Fahy)
(Yasmine.saleh@thomsonreuters.com)
Our Standards: The Thomson Reuters Trust Principles
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2018
