KEEP YOUR REGISTRATION DETAILS UP TO DATE
Registration details and VAT records provided to the FTA during your registration must be kept up to date. If any change occurs, update them within 20 business days to avoid potential penalties, this includes passport, EID, trade license, etc.
*If you meet the conditions of mandatory de-registration, you have to apply to the FTA to de-register as a taxable person
To amend registration details, use the “Edit” or “Amend” options on the EmaraTax Portal
VAT DE-REGISTRATION
You may submit a de-registration application if the value of your taxable supplies in the previous 12 months was under the Mandatory Registration Threshold of AED375,000 (voluntary de-registeration). The application must be submitted within 20 days of the occurrence of the following events:
You have no longer provided taxable supplies and do not intend to make any supplies in the following 12 months
The value of your taxable supplies or expenses over the past 12-month period is less than the Voluntary Registration Threshold (AED 187,500), and you do not expect to supply taxable supplies or incur taxable expenditure in excess of the Voluntary Registration Threshold in the next 30 days
Deregistration application should be made via the "Deregister" option on the EmaraTax Portal
Deregistration application cannot be completed unless all outstanding liabilities have been settled
Note: If you are registered with Planet for the Tourist Refund System, you are required to deregister from Planet first, in order to complete your deregistration of VAT with the FTA.
KEEP YOUR RECORDS
Tax records must be kept for at least five years, depending on the nature of your business, to avoid possible penalties.
Tax Registrants Must Keep the Following Records
- Records of all supplies and imports of goods and services
All Tax Invoices, credit notes, and alternative documents issued
Records of goods and services for which Input Tax was not deducted
Records of adjustments or corrections made to accounts or Tax Invoices
Inventory Records
- All Tax Invoices, credit notes, and alternative documents received
Records of goods and services that have been disposed of or used for non-business activities, including VAT amounts paid on such goods and services
Records of exported goods and services
You must also keep VAT records or accounts that include any of the following.
- Payable output tax on taxable supplies
Payable output tax on taxable supplies, calculated using the Reverse Charge Mechanism
Payable output tax after making corrections or adjustments
Recoverable input tax on supplies or imports
Recoverable input tax after corrections or adjustments
Correcting past errors
If you notice an error (e.g. an incorrect amount of input tax), you are obliged to make a correction within 20 working days of becoming aware of the error.
If it is more than 10K errors:
Suppose the error relates to a tax return or tax
assessment, and the value of the error has resulted in an
underpayment of VAT of AED 10,000 or less. In that case,
you may correct the error in the Tax Return for the Tax
Period in which you discovered the error
If it is less than 10K errors:
Suppose the value of the error has resulted in an
underpayment of VAT of more than AED 10,000.
In that case, you are required to make a Voluntary
Disclosure to the FTA
*In cases where an error is made, and a Voluntary Disclosure is submitted, the FTA may apply certain penalties. According to Cabinet Decision no. 40 of 2017 and its amendments.
You must keep accounting records, commercial books and all documents related to your business activities. These documents and records include
Balance sheet, Statement of Profit or Loss,
and Other Comprehensive Income
Records of fixed assetsfixed assetsfixed assetsfixed assets
All relevant inventory records and records of inventory checks (including quantities and values) at the end of any Tax Period
Records of salaries and wages
You must keep the required records for a minimum of 5 years after the end of the tax period to which they relate. The FTA may require you to retain the records for a further period not exceeding 4 years in specific cases determined in the FTP Executive Regulations
FOR REAL ESTATE OWNERS, THE RECORDS THAT MUST BE KEPT ARE
Sale/purchase contracts
Maintenance service invoices
Invoices with concerned entities
Leasing contract
Title deed
Receipts for land and property department fees
You must keep the required records for a minimum period of 15 years after the end of the tax period to which they relate
NON-EXECUTIVE DIRECTORS MUST KEEP THE FOLLOWING RECORDS
Decision to appoint the member
Decisions on rewards for members
Reward vouchers
Receipt or proof of receipt of rewards
PERFORMERS AND SOCIAL MEDIA INFLUENCERS MUST KEEP THE FOLLOWING RECORDS
Receipts of money transfer
Contracts
Invoices
Receipt of payment
Please note these are non-exhaustive lists as additional records may be
requested at the FTA’s discretion
Request a refund
You may request a VAT refund at any point in time if the input VAT is greater than the output VAT after submitting a VAT return or if there is a credit due to other circumstancesa credit due to other circumstancesa credit due to other circumstancesa credit due to other circumstances
Please keep your bank details up to date for faster refund processing
Once you have submitted a VAT refund application to the FTA, the Authority will inform you of the approval or rejection within 20 working days. In certain cases, the FTA will inform you that it may take longer than usual to process your application for audit purposes
If no VAT Refund is requested, any credit balance will be carried forward to subsequent tax periods and can be offset against future payable tax or administrative penalties imposed
SUBMIT YOUR TAX RETURNS ON TIME
As a rule, the FTA provides three months as the standard tax period (quarterly). However, if necessary, it may set shorter or longer tax periods for registrants. You must file your tax return no later than the 28th day from the end of each tax period or the following working day if the relevant date falls on an official holiday or weekend. Otherwise, the FTA may apply specific penalties.
Examples of Tax periods (“Staggers”)
Tax returns must, in any case, be submitted within the deadlines set by the FTA, even if no taxes are due for that period. In the event that the return is not submitted on time, late filing penalties are automatically levied. Tax returns must be submitted through the FTA’s online portal and must include the following information at the minimum.
- Name, address, and TRN (auto populated on the system)
Tax Period to which the Tax Return relates
Date of submission
Value of Taxable Supplies made in the Tax Period and the Output Tax charged
Value of Taxable Supplies subject to the zero rate made in the Tax Period
Value of Exempt Supplies made in the Tax Period
Value of any supplies subject to the Reverse Charge Mechanism
Value of expenses incurred in respect of you would like to recover input tax
Input Tax and the amount of Recoverable Tax
Total value of Due Tax and Recoverable Tax for the Tax Period
Payable Tax for the Tax Period 20
SETTLE YOUR PAYABLE TAX ON TIME
You will be required to settle any payable taxes on the Tax Return submission date, i.e. no later than the 28th day from the end of each Tax Period (or the following working day if the relevant date falls on an official holiday or weekend). It is important that you pay your taxes before the due date and avoids delaying it until the last day to stay ahead of any circumstances that may delay the receipt of the payment by the FTA (e.g. the bank may require 2 or 3 working days to complete the transfer).
Late payment penalties will automatically be levied if payment is not made on time
ISSUE VALID TAX INVOICES FOR ALL TAXABLE GOODS & SERVICES PROVIDED OR SOLD
ISSUE VALID TAX INVOICES FOR ALL TAXABLE GOODS & SERVICES PROVIDED OR SOLD
As a taxable person, you are required to issue valid tax invoices for each taxable supply or goods or services. Please make sure the tax invoices you issue meet the following criteria.
Full Tax Invoice
- If the recipient demands the tax calculation, the invoice must contain said details, as per Article 48 of the Law
- Ensure that the prices of goods and services advertised to consumers include VAT, whether in food menus, catalogues, or price tags
01 The words ‘Tax Invoice’ is clearly displayed on the invoice
02 The supplier’s name, address and the Tax Registration Number (TRN)
03 The receiver’s name, address, and TRN (if registered)
04 The serial or relevant Tax Identification Number (TIN) that helps
identify the Tax Invoice and its number in any number of invoices
05 Issuance date
06 Supply date, if it is different from the issuance date
07 Details of the supplied goods or services
08 The unit price, quantity or size of supplies, payable VAT rate and payable amount (in AED) for each good or service
09 Any offered discount rates
10 Total payable sum in AED
11 Payable tax in AED with the applicable exchange rate
Simplified Tax Invoice
The FTA allows you to issue a simplified tax invoice as opposed to a full tax invoice in certain situations
A SIMPLIFIED TAX INVOICE MUST INCLUDE
01 The words ‘Tax Invoice’ in clear writing
02The supplier’s name, address, and TRN
03 Tax Invoice issuance date
04 Details of the supplied goods or services
05 The total consideration and tax charged
YOU MAY ISSUE SIMPLIFIED TAX INVOICES IN ANY OF THE FOLLOWING CASES
- If the recipient is not registered for VAT
- If the recipient is registered for VAT and the supply does not exceed AED10,000
ISSUE VALID TAX CREDIT NOTES TO CORRECT OUTPUT TAX ERRONEOUSLY CHARGED
As a taxable person, you are required to issue valid tax credit notes for each correction of output tax. Please make sure the tax credit notes you issue meet the following criteria
