The UAE's final value added tax (VAT) guidelines were announced last month, and since then have helped clarifiy many things for investors and companies in the country.
VAT has been set at 5 percent on a number of products, but certain goods and services have been exempted such as basic consumer goods, healthcare and education.
Here are five things you need to know about the revised tax law, according to Khaleej Times:
- All taxable persons are required to register under the country's law and apply for a Tax Registration Number (TRN) within a stipulated time frame once the new laws are published in the UAE.
- Tax agents and/or legal representatives must be appointed, who will be responsible for all compliances and for tax payable on behalf of their principals.
- There are strict penalties for non-compliance, including prison terms and fines up to five times the tax due and payable by each taxable person and or entity who is in default including any wilful default of any tax provisions.
- Procedures and timelines for appeals and their disposals have been clearly defined, and are likely to be within 20 business days from the date of the taxable or appeal event or liability becoming due for payment.
- Other key provisions include tax audits, inspections, appeals and their redressals etc.