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{"id":7365,"date":"2021-08-26T11:36:28","date_gmt":"2021-08-26T11:36:28","guid":{"rendered":"https:\/\/ratheeshtax.com\/?page_id=7365"},"modified":"2021-08-30T10:22:20","modified_gmt":"2021-08-30T10:22:20","slug":"frequently-asked-questions","status":"publish","type":"page","link":"https:\/\/ratheeshtax.com\/frequently-asked-questions\/","title":{"rendered":"Frequently Asked Questions"},"content":{"rendered":"\t\t
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FAQ<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWill there be VAT grouping?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Businesses that satisfy certain requirements covered under the Legislation (such as being resident in the UAE and being related\/associated parties) will be able to register as a VAT group. VAT grouping would generally simplify accounting for VAT.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhen are businesses supposed to start registering for VAT?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

A Person required registering for VAT needs to submit a registration application to the FTA within 30 days of being required to register.<\/p>

Registration applications shall be submitted via the e-Services Portal on the FTA website<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWill it be possible to issue cash receipts instead of VAT invoices?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

A registered taxable person must issue a valid VAT invoice for its taxable supplies. To be considered as a valid VAT invoice, the document must include certain particulars as mentioned in the legislation. In certain situations the supplier may be able to issue a simplified VAT invoice. The conditions for the VAT invoice and the simplified VAT invoice are mentioned in the legislation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat are the cases that would lead to the imposition of penalties?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Penalties will be imposed in cases of non-compliance with tax legislation.<\/p>

Examples of actions and omissions that may trigger penalties include:<\/p>

A person failing to register when required to do so;
A person failing to submit a tax return or to make a payment within the required period;
A person failing to keep the records required under the issued tax legislation;
Tax evasion offences where a person performs a deliberate act or omission with the intention of violating the provisions of the issued tax legislation.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWho can or will be able to register for VAT?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

A business must register for VAT if its taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. Furthermore, a business may choose to register for VAT voluntarily if its supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500.<\/p>

Similarly, a business may register voluntarily if its expenses exceed the voluntary registration threshold. This latter opportunity to register voluntarily is designed to enable start-up businesses with no turnover to register for VAT.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan anyone practice the profession of Tax Agent?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

It is prohibited to practice the profession of a Tax Agent without completing the registration and receiving accreditation from the FTA. Doing so constitutes a legal offense.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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VAT will be charged at 0% in respect of the following main categories of supplies:<\/p>

Exports of goods and services to outside the GCC;
International transportation, and related supplies;
Supplies of certain sea, air and land means of transport (such as aircraft and ships);
Certain investment grade precious metals (e.g. gold, silver, of 99% purity);
Newly constructed residential properties, that are supplied for the first time within 3 years of their construction;
Supply of certain education services, and supply of relevant goods and services;
Supply of certain healthcare services and supply of relevant goods and services.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Excise Tax<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tSince when was excise tax implemented in the UAE?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Excise Tax came into effect on 1 October 2017 based on Federal Decree-Law No. (7) of 2017 on Excise Tax.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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Excise Tax is calculated based on the excise price. The excise price is the higher of the price published by the FTA in a standard price list if available and the designated retail sales price for the excise good less the tax included therein.\u00a0<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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The following goods are subject to excise tax in the UAE at the following rates of tax:<\/p>