VAT Administrative Exceptions in UAE
VAT Administrative Exceptions in UAE
According to the most recent recommendations on UAE VAT Administrative Exceptions, the economic situation is periodically shifting while still adhering to VAT regulations. To become completely compliant with VAT regulations, you might encounter certain difficulties and complexities. These difficulties may arise from the need to sort the supply’s tax invoices in the format specified by the FTA and within fourteen days of the date supplied. Depending on the situation, even small mistakes in documentation might have serious repercussions, including interest, fines, and/or prosecution. To ensure cooperation and regularize affairs with a purpose to reduce risk, it is best to enlist the help of tax agents.
Recently, the FTA released a new user guide for the VAT exceptions category, which will benefit not only small businesses but also many larger companies who are having trouble complying with VAT regulations. The Federal Decree-Law No. 8 of 2017 grants registrants price reductions or exceptions under the VAT body exceptions.
The following issues are subject to limitations
- Tax credit notes and invoices: The tax registrant must submit documents that are accessible from any source. In the event of international transactions, it is required to show the foreign exchange conversion rate, the VAT rate, and the VAT amount.
- Duration of the Tax Period: In certain cases, registrants are permitted to modify the Tax Period’s duration so that the business has enough time to be considered for filing its tax returns.
After the FTA accepts the explanations, the following registered individuals will be eligible to receive the profit below body exceptions:
- Individuals: Board members, owners of real estate, and other people, such as independent contractors, who have issued the following in the previous 12 months:
• The quantity of bills
• The supplies that are taxable
• The entire amount of taxes paid
- Companies in refund position: Companies that were in a refund position during the whole Tax Period in the previous 12 months and anticipate remaining in that position.
- By submitting information on the total amount of taxes paid in the previous 12 months, small and medium-sized businesses (SMEs) can receive a tax payment extension. As a result, non-exempt businesses can give information from the previous 12 months. Factors taken into account while calculating the length of the tax period (with the previous 12 months):
• The total amount of taxes paid
• Taxable materials
• The registrants’ penalties
- Stagger: Companies typically grumble that their tax periods don’t coincide with their fiscal year-end. Businesses will be able to match their tax periods with their 12-month ends thanks to this body exception, which will lessen the workload for the organizations in charge of VAT management.
- Extension of time for exporting goods: The person should provide the real justifications for the extension of the exporting time. Sometimes the supplier has no control over it.
Why choose IBR Group Accountants?
As their tax advisors, the IBR GROUP ACCOUNTANTS team consists of seasoned chartered accountants with necessary industry-specific taxation experience who adhere to UAE laws in order to fulfill their VAT reporting obligations. We are dedicated to offering our clients the best VAT consulting services in Dubai while adhering to the FTA’s laws and regulations. The simplest way to correct the VAT structure that makes the entire VAT process easier, including VAT registration, VAT record keeping and maintenance, VAT return filing, VAT accounting, VAT deregistration, and everything else pertaining to value-added tax in the United Arab Emirates, is to use IBR GROUP ACCOUNTANTS VAT consultancy services in Dubai.