Insights December , 2017

General Overview of Enforcement Agency of VAT in the UAE

The newly-formed Federal Tax Authority (“FTA”) will be the enforcement agency headquartered in the capital city, Abu-Dhabi, with full authority to administer, collect, and enforce federal UAE taxes, including VAT.

The following are some of the highlights regarding the scope of the FTA:

1. The FTA will also be responsible for conducting tax audits on a selected basis.
2. There is a renewed focus on the requirement for all businesses in the UAE, in particular those registered under VAT, to maintain accounting records and VAT related information.
3. VAT returns and source documents are required to be submitted to the FTA in English, either by the business or its tax agent.
4. It is permissible to maintain the accounting records and source documents in English provided a translated copy is provided to the FTA and tax returns are submitted in Arabic, upon request by the FTA
5. Every registered business will receive a VAT Registration Number as a unique identifier with the FTA.
6. A business registered with the FTA may appoint a tax agent to act on behalf of its VAT affairs.

Disclaimer on Use

The information presented is intended for general information only and is not meant to be a substitute for professional advice or to be used for decision-making.

Professional advice relies on an assessment and understanding of the specific situation for each person and, therefore, the application of changing laws and regulations in the UAE, will vary widely from case to case.

The information contained herein is based on facts available from sources we believe to be credible at the time of publication and is subject to change.