The UAE, as an Arab country, seeks to provide all entertainment, service and government services to all citizens without bothering, as it seeks to provide a generous and luxurious life for all. Federal Tax Authority.
Value Added Tax (VAT) in the UAE
The UAE is expanding its field as well as diversifying income and revenue from different sources.
All this is done so that the state can provide the public expenditures and services that will be available to citizens, and taxes, in general, are one of the modern global systems of the economy.
These taxes collected from citizens aim to enhance and develop behaviors and redistribute wealth as well as their role in developing government services.
Where taxes are used to develop and repair hospitals, government departments, schools, parks, roads, and others.
You can register on the Federal Tax Authority website to perform VAT in the UAE via the link below
Types of taxes in the UAE
There are two types of taxes, direct and indirect, and the UAE relies on the second type, which means purchases, government interests and services, and they are:
- Value Added Tax (VAT) in the UAE.
- selective tax.
- Income tax in the UAE.
- Corporate tax.
- Taxes in tourist facilities.
UAE Value Added Tax (VAT) law pdf
You can view the value-added tax law in the UAE pdf via the link below
The UAE implemented the Value Added Law on January 1, 2018, and it is one of the types of indirect taxes followed by the UAE.
Direct value tax is levied on most goods and transactions and is levied at 5% and placed on the final consumer.
This law, which imposes a blow on the added tax, stipulates that this tax is a new source of income for the Emirates.
This tax serves to contribute to maintaining the continuity of government services as well as helping them achieve the vision of reducing dependence on oil.
How to register for VAT
It is necessary and necessary for every organization that is required to pay VAT to register for VAT in order to be able to pay the dues.
Registration is done through the official website of the Federal Tax Authority, you can log on to the website and log in.
Each institution must create its own electronic account on the site, in order to start receiving and obtaining the service.
Entering the electronic services section on the website, registering an account, and subscribing to the value-added tax service.
Through the same website, you can learn more information and data about tax registration.
To complement more information about value-added tax in the UAE pdf, we must know more information about tax returns.
It is worth noting that the VAT declaration is a form that institutions and companies that are entitled to pay that tax fill out.
This official document is handed over to the Federal Tax Authority, in this declaration more tax information is explained.
Through it, we learn about the output tax due, the tax refundable, as well as more other details that exist.
Non-compliance with the tax return
There are many companies and institutions that did not comply with bringing the tax return and submitting it to the authority.
In that case, fines and penalties are imposed on the owners of establishments that violate this law.
According to Cabinet Resolution No. 40 issued in 2017, it was said that in the event of a delay in submitting the tax return on time, fines will be imposed.
Whether it is related to the delay in submitting the acknowledgment or not submitting the acknowledgment at all.