Online registration for VAT from mid-September

Abu Dhabi / WAM

An online registration on tax purposes for businesses will be open effective mid-September 2017, according to the Federal Tax Authority (FTA) with an integrated system to be provided to serve the business sectors as per the highest
international standards.
This marks a major step underlining the UAE’s leading position in the application of a world-class tax system, FTA announced on Tuesday. The announcement was made at a media briefing by the FTA to familiarise them on all aspects of the FTA’s work and the functions it will undertake in the coming period. The FTA also briefed media on the implications of the tax procedures for boosting the momentum of the UAE’s sustainable economic development, building the future economy and continuing to provide high quality services.
Khalid Ali Al Bustani, Director General of FTA, said: “The UAE has reached a very advanced stage regarding the legislative aspects of the tax system that is among the best in the world. Through the Ministry of Finance, which is authorised to issue tax legislation and policies, the Tax Procedures Law was issued earlier, to govern the relationship between the FTA and the taxable persons.”
“The Excise Tax and VAT Laws are expected to be issued during the third quarter of this year and the regulations concerning both laws in addition to the Federal Tax procedures are expected to be issued during the fourth quarter of 2017,” he added.
“Tax laws and procedures in the UAE are simple and easy to comply with, and were developed based on in-depth studies of all options and reviewing various international practices. The Tax Procedure Law is a legislative framework that defines the FTA’s system of work regarding the management, collection and implementation of federal taxes, and contributes to the promotion of the principles of governance and transparency in all tax transactions.” “We have achieved important milestones in implementing the highest and best international standards. We have introduced an integrated tax management system that forms an electronic platform for registration, submission of tax returns and tax payable owed by the taxable persons. Further, we have developed innovative systems and integrated them with concerned departments/entities in Emirates governments such as customs’ departments
for the purpose of managing and collecting taxes on import.”
He explained that the application of the tax system will not affect the country’s competitiveness because it is among the lowest in the world, and it will also support efforts towards enhanced services and help achieve the highest levels of happiness for all members of the UAE community. The taxes will be self-compliant and voluntary for business sectors, with swift taxation procedures that are
electronic, fully automated and
in accordance with the highest
international standards.
“The tax laws and procedures will strengthen the UAE’s economic development and enable it to be a real competitor among the world’s advanced economies. This will be led by providing resources to support the expansion of key sectors that are related to the community, and providing the best services, especially in the fields of healthcare and education, and
infrastructure projects,” he added.
Al Bustani noted that the registration processes will begin first with blue-chip companies, as well as companies that produce and import excise goods, where further details will be provided in a later stage. The registration processes will be conducted through e-Services on the FTA’s website, which will be launched in the second half of this month (August) and will provide services 24 x 7, and will offer all the relevant information on the UAE taxes.
“As part of the FTA’s procedures, we are committed to provide business sectors with the best services and a suitable and advanced environment to register their businesses in an easy and convenient manner. Businesses can register via our website to ensure their readiness at the time of issuance of the VAT and Excise Tax laws and their regulations. After this, details about the tax period, submissions of tax returns and tax payable
will be announced.” Al Bustani
explained.
“Through our efforts and strategic partnerships, the FTA seeks to provide the best services that will help the business sector to prepare early for VAT and excise tax implementation. Businesses can register via our website to ensure their readiness at the time of issuance of the VAT and Excise Tax laws and their regulations in addition to the tax procedures regulations. After this, details about the tax period, submission of tax returns and tax payable by taxable persons will be announced” he said.
“The FTA, along with the Ministry of Finance, conducted the first phase of the awareness sessions on the tax system for various business sectors and relevant stakeholders from March to May 2017. Up to 24 awareness workshops were conducted and witnessed remarkable participation by more than 15,000 companies from different business sectors
operating nationwide,” he said.

Other Gulf states may introduce VAT

ABU DHABI / Reuters

The United Arab Emirates and Saudi Arabia will introduce value-added tax next January but other countries in the six-nation Gulf Cooperation Council may do so later in the year, a senior UAE official said on Tuesday.
Their state finances pressured by low oil prices, GCC countries have jointly agreed to one of the biggest changes in their tax policy for decades: imposition of VAT at a 5 percent rate next year.
But the move will involve major administrative and technical challenges for GCC governments, requiring them to draft detailed regulations, register companies paying the tax and create bureaucracies to oversee the system. This has raised speculation that some countries may not be able to introduce the tax at the start of 2018 as originally planned. Khalid Ali al-Bustani, director-general of the UAE’s Federal Tax Authority, confirmed this on Tuesday.
“The UAE and Saudi Arabia will be implementing VAT starting 2018 January, and the rest could implement until the end of 2018,” Bustani told a news conference.