UAE announces changes to VAT provisions
The amendments — set to take effect on January 1, 2023 — were made in line with international best practices, in light of the GCC Unified VAT Agreement.
Under the changes, registered individuals who make taxable supplies will be allowed to apply for an exception from VAT registration — if all their supplies are zero-rated. They may also be eligible if they no longer make supplies other than zero-rated ones.
The amendments — set to take effect on January 1, 2023 — were made in line with international best practices, in light of the GCC Unified VAT Agreement.
Under the changes, registered individuals who make taxable supplies will be allowed to apply for an exception from VAT registration — if all their supplies are zero-rated. They may also be eligible if they no longer make supplies other than zero-rated ones.
What is withholding tax and its proposed application in the UAE
Usually, WHT applies to cross-border payments as well. WHT rates vary based on the nature of goods and services received and the relationship status with the non-resident supplier.
The term ‘withholding tax’ refers to the tax withheld at source. In some jurisdictions, this is called pay-as-you-go. In the withholding tax (WHT), the party paying the amount against the goods and services withholds the tax at the source at the pre-given rates and pays the remaining amount to the party providing the goods and services. The amount of withholding tax is paid directly to the government by the party that deducts the tax at source. Like the jurisdictions where the personal income tax is applicable, tax is deducted at source by the employer on salary, and the employer pays the tax directly to the government.
Usually, WHT applies to cross-border payments as well. WHT rates vary based on the nature of goods and services received and the relationship status with the non-resident supplier.
The term ‘withholding tax’ refers to the tax withheld at source. In some jurisdictions, this is called pay-as-you-go. In the withholding tax (WHT), the party paying the amount against the goods and services withholds the tax at the source at the pre-given rates and pays the remaining amount to the party providing the goods and services. The amount of withholding tax is paid directly to the government by the party that deducts the tax at source. Like the jurisdictions where the personal income tax is applicable, tax is deducted at source by the employer on salary, and the employer pays the tax directly to the government.
UAE: New payment method announced for tax liabilities
The Federal Tax Authority earlier announced that as of Sunday, October 30, the eDirham platform will no longer be accepted.
The Federal Tax Authority (FTA) announced that it will be discontinuing the use of the eDirham system in paying taxes as of today, October 30, 2022, replacing it with Magnati, the smart payment option from First Abu Dhabi Bank (FAB).
The Federal Tax Authority earlier announced that as of Sunday, October 30, the eDirham platform will no longer be accepted.
The Federal Tax Authority (FTA) announced that it will be discontinuing the use of the eDirham system in paying taxes as of today, October 30, 2022, replacing it with Magnati, the smart payment option from First Abu Dhabi Bank (FAB).
👍1
Capricorn Partner Offer by GOV COM SERVICES !!
If you are having a Capricorn Partner login ( Not a reseller or an agent login ), we can help you to boost up your sales in your EXISTING Capricorn Partner login aggressively if you are not doing Capricorn actively.
Lots of Discounts and Offers are waiting for you in your Capricorn Login.. !
Contact Gov Com Services to know more to increase your sales in Capricorn !!
Regards
Gov Com Services
8155075834
If you are having a Capricorn Partner login ( Not a reseller or an agent login ), we can help you to boost up your sales in your EXISTING Capricorn Partner login aggressively if you are not doing Capricorn actively.
Lots of Discounts and Offers are waiting for you in your Capricorn Login.. !
Contact Gov Com Services to know more to increase your sales in Capricorn !!
Regards
Gov Com Services
8155075834
😁1
UAE Taxes on Individuals Brief
The UAE does not levy income tax on individuals, but it does have other types of taxes. According to the official UAE Government website, the following taxes are applicable in the country:
Excise tax
It is levied on specific goods which are typically harmful to human health or the environment. Consumers need to pay more to buy such goods. The aim is to “reduce consumption of unhealthy and harmful commodities while also raising revenues for the government that can be spent on beneficial public services”.
The tax is levied on carbonated drinks, energy drinks, tobacco, electronic smoking devices and tools, liquids used in such devices and tools, and sweetened drinks.
Value Added Tax
VAT is a tax on the consumption or use of goods and services. A 5 per cent VAT is levied at the point of sale. Businesses collect and account for the tax on behalf of the government.
“VAT will provide the UAE with a new source of income which will be continued to be utilised to provide high-quality public services. It will also help government move towards its vision of reducing dependence on oil and other hydrocarbons as a source of revenue,” the official government website states.
Taxes in tourist facilities
"In Dubai, hotels charge 'Tourism Dirham Fee' per room per night of occupancy (for a maximum of 30 consecutive nights) ranging from Dh7 to 20 depending on the category/grade of the hotel,” says the website.
“In May 2016, it was announced that hotels in Abu Dhabi would charge a new additional fee of 4 per cent of hotel stay bill and Dh15 charges per night per room.”
In Ras Al Khaimah, hotels charge Dh15 tourism fee per room per night.
The UAE does not levy income tax on individuals, but it does have other types of taxes. According to the official UAE Government website, the following taxes are applicable in the country:
Excise tax
It is levied on specific goods which are typically harmful to human health or the environment. Consumers need to pay more to buy such goods. The aim is to “reduce consumption of unhealthy and harmful commodities while also raising revenues for the government that can be spent on beneficial public services”.
The tax is levied on carbonated drinks, energy drinks, tobacco, electronic smoking devices and tools, liquids used in such devices and tools, and sweetened drinks.
Value Added Tax
VAT is a tax on the consumption or use of goods and services. A 5 per cent VAT is levied at the point of sale. Businesses collect and account for the tax on behalf of the government.
“VAT will provide the UAE with a new source of income which will be continued to be utilised to provide high-quality public services. It will also help government move towards its vision of reducing dependence on oil and other hydrocarbons as a source of revenue,” the official government website states.
Taxes in tourist facilities
"In Dubai, hotels charge 'Tourism Dirham Fee' per room per night of occupancy (for a maximum of 30 consecutive nights) ranging from Dh7 to 20 depending on the category/grade of the hotel,” says the website.
“In May 2016, it was announced that hotels in Abu Dhabi would charge a new additional fee of 4 per cent of hotel stay bill and Dh15 charges per night per room.”
In Ras Al Khaimah, hotels charge Dh15 tourism fee per room per night.
👍2
Capricorn 4 hours Downtime Update -
There will be a downtime today from 8:00 p.m. to 12:00 a.m. due to server maintenance, and Cash will not be available during that time. It is requested to all the users please download your DSCs before the downtime.
Regards
GOV COM SERVICES
There will be a downtime today from 8:00 p.m. to 12:00 a.m. due to server maintenance, and Cash will not be available during that time. It is requested to all the users please download your DSCs before the downtime.
Regards
GOV COM SERVICES
DUBAI UPDATE -
Federal Tax Authority activates EmaraTax
The transition to the new platform was done seamlessly in an effort to ensure all current users can easily navigate EmaraTax. The Federal Tax Authority (FTA) has launched its new integrated and fully developed digital tax administration platform EmaraTax on December 5, 2022. The platform has been successfully activated, with all services now made available to taxpayers using the latest technologies implemented in the tax field around the world.
Federal Tax Authority activates EmaraTax
The transition to the new platform was done seamlessly in an effort to ensure all current users can easily navigate EmaraTax. The Federal Tax Authority (FTA) has launched its new integrated and fully developed digital tax administration platform EmaraTax on December 5, 2022. The platform has been successfully activated, with all services now made available to taxpayers using the latest technologies implemented in the tax field around the world.