Overview
The FTA conducts two types of audits;
- An investigation on a sample basis when a refund is applied
- Annual audit
The FTA provides strict timelines for submitting the requested information
Happy to Help!
KPI Tax experts can assist you compiling the required information in filing your VAT Returns on time. Should you require, we will also verify the transactions in the VAT Return period, on a sample basis, to check the correct treatment of the VAT.
Frequently Asked Questions
VAT was introduced on 1 January 2018 in the UAE. VAT in the UAE is based on the Common GCC Tax Framework.
Businesses can register for VAT through the e-services portal on the FTA website. They need to first create an account with FTA. Once the account is created, relevant information needs to be provided and supporting documents like copies of Trade License, Memorandum and Articles of Association, Passport, Emirates id, Valid UAE Residence Visa, financials etc. needs to be uploaded.
VAT registration is mandatory for all businesses with taxable supplies exceeding AED 375,000 in the preceding 12 months or if it expects to exceed the mandatory threshold in the next 30 days. Alternatively, if the taxable supplies exceed AED 187,500 in the same period, it can proceed with voluntarily registration.
FTA does not charge for VAT registration.
UAE VAT laws specified certain criteria / threshold for registration. If the taxable supplies exceed the minimum threshold, one has to register. Having said that, FTA allows certain persons to register for VAT to claim the input VAT incurred specifically in construction of real estate properties by individuals.
Federal Tax Authority is the designated government authority responsible for administration, collection and enforcement of federal taxes in the UAE. It was established in 2016 via Federal Decree Law 13 of 2016.