More than 3,500 complaints on first day of VAT, says Economy Minister
There were 3,621 complaints to the Higher Committee of Consumer Protection on the first day of VAT implementation, according to the Ministry of Economy.
Two weeks later, daily complaints remained in the hundreds.
To address this, the committee is working to prevent any unjustifiable price hikes, said Sultan Al Mansoori, the Minister of Economy.
“The committee received growing calls from the consumers during the first days of the VAT application,” said Mr Al Mansoori at a recent Dubai meeting of the committee, according to state news agency Wam.
“People had some concerns but their worries have ebbed with the passage of time and by the end of the first fortnight of the application, the calls received by the committee declined from 3261 on the first day of the application to 493 on January 15.”
Most complaints concerned price hikes, tax registration numbers and erroneous calculations, said Khalid Ali Al Bustani, the director general of Federal Tax Authority.
“Traders and departments against whom the complaints were filed have been notified and were given a grace period to rectify their strategies as per the tax rules and condition,” said Mr Al Bustani, who attended the meeting.
Mohammed Al Shehhi, the undersecretary for economic affairs in the Ministry of Economy, said, “The committee is in constant follow-up of the market to prevent any violations and in case of any non-abidance, all legal measures have been taken against the offenders.”
Source: www.thenational.ae/uae/more-than-3-500-complaints-on-first-day-of-vat-says-economy-minister-1.699381
Now check the Authenticity of your Tax Invoice through the New Online VAT Calculator
The Federal Tax Authority (FTA) on Tuesday launched a Tax Registration Number (TRN) verification service on its website, where consumers can check the authenticity of tax invoices and ensure that the merchants and service providers issuing them are registered with the FTA.
The Authority also debuted the VAT Calculator, which allows consumers and service recipients to instantly calculate the Value Added Tax (VAT) due on their purchases of goods or services. This, in turn, makes it possible for the public to remain aware of their rights and ensures full transparency.
Sarah Al-Habshi, director of Tax Compliance and Enforcement at the Federal Tax Authority, said that the new services were part of the Authority’s efforts to protect consumers and prevent any attempts at price manipulation as the UAE tax system goes into effect. These services support and facilitate the Authority’s efforts to monitor markets in collaboration with relevant authorities and stakeholders.
The TRN Verification service is fast, accurate and seamless, Al-Habshi explained, adding that consumers can enter the TRN found on their invoices on the “TRN Verification” section of the “Getting Help” tab on the FTA website, then, if the number is correct, the website will display the company’s name in English and Arabic. If the company is not registered in the tax system, the number entered will not yield results.
Al-Habshi went on to note that the VAT Calculator is designed to be easy to use, and will be available on the FTA website, under the “Getting Help” tab. Once accessed, the page displays a box where the price excluding VAT can be entered, upon which the calculator will display the total tax amount and the total price including VAT.
Users can alternatively enter the full price (including VAT), where the calculator would display the original pre-tax price, as well as the tax amount.
Source: www.khaleejtimes.com/business/vat-in-uae/vat-in-uae-new-online-calculator-to-check-authenticity-of-tax-invoice
Levy of five percent VAT on e-shopping in UAE
Online shopping will not be exempted from the Value Added Tax (VAT) levy which took effect on January 1, 2018 in the United Arab Emirates, Ittihad reported.
The UAE Federal Tax Authority (FTA) announced that a five per cent tax as VAT would be levied on e-shopping transactions, on equal footing with goods bought through conventional purchases at trading outlets across the country. According to the FTA procedures, the 5% levy would be paid in the UAE on receiving the parcel purchased through the online medium. The 5% VAT levy would also apply to all electronic websites whose overall online imports exceed the compulsory cap of AED 375,000 over the past 12 months or over the coming 30 days. The regulations are in line with the Federal Law Decree 8 of 2017 on the Value Added Tax and its executive bylaw. Source: www.gdnonline.com/Details/303797/UAE-to-levy-five-per-cent-VAT-on-e-shopping |
VAT Procedures For Non-Registered Firms in UAE
Following the introduction of value-added tax (VAT) on January 1, 2018 in UAE, The Federal Tax Authority has clarified the import procedures that the non-VAT registered businesses should follow.
Non-registered businesses seeking to import into the UAE must follow standard customs procedures, and must either complete a declaration and pay through the e-Dirham system or through the e-Services portal on the FTA website; via a clearing company approved by the FTA at the port of entry; via a freight forwarder approved by the FTA; or via a courier company where the goods are delivered to the importer.
In addition to following standard procedures when importing for re-export, transit, or temporary admission, non-registered businesses must provide a guarantee for the tax due on the imported goods in question, either by entering a previously obtained e-Guarantee reference number on the e-Services portal; via a clearing company approved by the FTA at the port of entry; or via a freight forwarder approved by the FTA.
Source:https://www.taxnews.com/news/UAE_Explains_VAT_Procedures_For_NonRegistered_Firms____76241.html