VAT & Excise Tax

The UAE Ministry of Finance announced, on 28 October, amendments to certain provisions of the UAE Value Added Tax (VAT) regime. The changes will come into force on 1 January 2023.

On 05 December 2022, the Federal Tax Authority (FTA) launched EmaraTax, an unified communication and entirely created digital platform for managing taxes in UAE.

If any circumstances occur while VAT registration, you must updating your records within 20 business days. Please note that some sections will be editable whilst some others are not.

The UAE Ministry of Finance announced amendments to some provisions of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT), which will be effective from 1st January 2023.

A tax audit is basically a government’s assessment of a company about their responsibility as a taxable entity. This kind of audit is conducted by the FTA.

The UAE Cabinet of ministers issued the eligibility to recover the input VAT incurred for the construction and operation of mosques will come into effect from October 29, 2022.

The intent of Excise Tax is to reduce consumption of these commodities while also raising revenues for the government that can be spent on public services.

The FTA has recently published VAT Public Clarification P028 on eligibility of a business to recover input VAT on expenses such as Mobile Phones, Airtime, and Data Packages.

VAT has become an integral part of business in the UAE. The UAE’s Federal Tax Authority (FTA), for its part, has taken proactive measures to clarify existing regulations and introduce new VAT guides and clarifications in the past three years.

If you are a UAE Local National building a new residence in the UAE, you are likely to incur VAT on your Building construction costs.