Key Points That You Must Know About UAE’s Tax Administration System

In January 2018 VAT was implemented in UAE, therefore, it became mandatory for every company to ensure that their financial records are up-to-date and in line with FTA in UAE.  All the businesses and companies in Dubai are obliged to get registered for VAT at the FTA portal. To fulfil requirements of FTA in UAE all the accountants in Dubai are expected to make sure that their clients are obeying FTA requirements. Profits Plus Accountants can help you in maintaining your business records according to the requirements of FTA in UAE. Because any company that fails to fulfil FTA requirements will be fined AED 10,000 and AED 50,000 on the second time.

The first move towards establishing Tax Administration System was the formation of FTA in UAE. Federal Tax Authority was formed under the aegis of federal decree-Law No (13) of 2016. Goals, operations and rights of FTA in UAE were defined according to federal law No (7) of 2017 on TAX Procedures (TPL). TPL also clarified the relationship between taxpayers and the FTA in UAE. TPL also specified Arabic as the only language allowed for submitting accounting records or any other documentation to FTA in UAE.   

FTA in UAE also has the powers of the audit. They have the rights of conducting audits on the taxpayer’s office or worksite such as wherever the goods or records are being kept by the companies. FTA has the authority of shutting down business operations of the taxpayer in case the taxpayer is not paying tax or not maintaining audit reports. FTA in UAE has the authority of seizing equipment, reaching all the original records of any taxpayer or take samples of stock.   

Expert accountants at Profits Plus can be of service to you by providing real-time support. They can provide you with profits and loss and balance sheet on a regular basis, so you do not have to worry about keeping up your accounting reports.