GCC Indirect Tax Weekly Digest

UAE VAT registration in three easy steps

The FTA this week issued a press release urging businesses to take advantage of the recent decision taken to waive late VAT registration penalties until April 30.

The UAE tax authorities reminded businesses that the VAT registration process is very simple, free and can be completed 24/7.

In order to initiate the process the user should visit the FTA website: www.tax.gov.ae; go to the e-Services portal and set up an account by clicking on “Registration”. A verification email is then sent, after which the account is accessible through the “Login” button. Users can then begin the easy 3-step registration process by going to “Create an Account”, filling the form, and finally, clicking “Submit for Approval”.

The FTA have also produced an infographic summarizing the process.

FTA publishes Cabinet Decision on Charities

On Wednesday, the UAE tax authorities issued Cabinet Decision No.(55) of 2017 on Charities That May Recover Input Tax. The decision, which has retrospective effect from 1 January 2018, confirms that certain charities (as specified in an annex) will be able to recover all the input tax they incur, with the exception of tax excluded from recovery by virtue of the UAE Executive Regulations on VAT and tax paid for goods and services used for making exempt supplies.

The annex lists the specific charities to which the cabinet decision applies in both English and Arabic. 

Prices may be displayed inclusive of VAT 

The FTA issued a reminder to UAE businesses this week that prices for goods and services must be displayed including VAT in order to avoid administrative penalties. The fine for a violation of this type is AED 15,000. If they have not already done so, businesses should immediately take steps to amend their advertised prices on websites, printed materials (e.g. menus, brochures, price tags etc.) and signs (e.g. boards, window stickers etc.)

Please note that this digest is for information purposes only and should not be construed as an advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.