News & Update
Becker Advisors Accounting & Taxation procedures has been approved as Tax Agency in UAE - Tax Agency Number 30000145
Becker for Financial Solutions LLC has been approved by the Federal Tax Authority to act as Tax agency in United Arab Emirates to assist UAE-based businesses comply with tax regulations and to assist non-residence businesses to register with the Federal Tax Authority (FTA) as it is required for them to register for VAT purposes regardless of the required threshold.
To be a Tax agency, the registered firm needs to have a registered Tax agent who is authorized by the Federal Tax agency to act as Tax Agent in UAE. The Tax agent is not only a Tax consultant, but he/she must have appropriate professional experience, be of good conduct and behavior, never having been convicted of a crime or misdemeanor prejudicial to honor or honesty, irrespective of whether or not he/she may have been rehabilitated. He/she must maintain a high level of education and/or a professional certificates.
Businesses need to appoint a Tax agency/agent as the Tax agent is the authorized person to act on behalf of the taxable person and will be able to communicate with the Federal Tax authority to solve any issues related to the taxable person obligation toward the authority.
The UAE Ministry of Finance has launched the Second phase of its series of awareness workshops aimed at explaining the implementation of value-added tax (VAT).
An awareness session aimed at explaining the implementation of VAT. The session will also explain how businesses can register.
The sessions are free with prior registration. To register click here
UAE Businesses VAT-related responsibilities....
All businesses in the UAE will need to record their financial transactions and ensure that their financial records are accurate and up to date. Businesses that meet the minimum annual turnover requirement (as evidenced by their financial records) will be required to register for VAT. Businesses that do not think that they should be VAT registered should maintain their financial records in any event, in case we need to establish whether they should be registered.
VAT-registered businesses generally:
must charge VAT on taxable goods or services they supply;
may reclaim any VAT they’ve paid on business-related goods or services;
keep a range of business records which will allow the government to check that they have got things right
If you’re a VAT-registered business you must report the amount of VAT you’ve charged and the amount of VAT you’ve paid to the government on a regular basis. It will be a formal submission and it is likely that the reporting will be made online.
If you’ve charged more VAT than you’ve paid, you have to pay the difference to the government. If you’ve paid more VAT than you’ve charged, you can reclaim the difference.
Are you Ready for the VAT? You need to prepare your business...
Concerned businesses will have time to prepare before VAT will come into effect in January 2018. During that time, businesses will need to meet requirements to fulfill their tax obligations. Businesses could start now so that they will be ready later. To fully comply with VAT, We believe that businesses may need to make some changes to their core operations, their financial management and book-keeping, their technology, and perhaps even their human resource mix (e.g., accountants and tax advisors). It is essential that businesses try to understand the implications of VAT now and once the legislation is issued make every effort to align their business model to government reporting and compliance requirements. We will provide businesses with guidance on how to fully comply with VAT once the legislation is issued. The final responsibility and accountability to comply with law is on the business.
President UAE signed Executive Regulation Cabinet Decision No. 52 Of 2017 On VAT
The Ministry of Finance, MoF, Monday announced that His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, signed the Executive Regulation for the Federal Decree-Law No. (8) of 2017 on Value Added Tax, VAT.
The tax will go into force effective January 2018, and all business have to take all necessary measures to avoid the risk of non-registration by 1st January, 2018, which would entail fines as stipulated in Cabinet Decision No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.
The Regulation defines VAT as the 5% tax imposed on the import and supply of goods and services at each stage of production and distribution, including what is a deemed supply, with the exception of specific supplies subject to the zero rate and what is exempted
Central Bank of UAE has begun to publish daily exchange rates for VAT related obligations.
The Central Bank of UAE has begun to publish exchange rates on daily basis for certain currencies against the UAE Dirham to be used for VAT related obligations.
The central bank also provided the historical rates for the period from 1-1-2018 till date and the daily rates are being updated continuously. Business were unable to track the rate to comply with the Article 69 of Federal Decree-Law No. (8) of 2017 which states that where a supply is in a currency other than AED, the amount stated on the tax invoice shall be converted to AED using an exchange rate approved by the Central Bank at the date of supply. having the rates now published by the central bank, all businesses should take action to ensure that they comply with the Central Bank exchange rates on immediate basis.
To get access to the list of the rates, you can check it on UAE central bank website.