Dubai Economy issues 4,692 instant licenses to date Initiative reflects the sustainable economic development and competitiveness of Dubai

Visitor's at Dubai Economy. The Business Registration and Licensing (BRL) sector in Dubai Economy reported that 4,692 Instant Licenses were issued since the launch of the service in July 2017 to date.

Dubai: The Business Registration and Licensing (BRL) sector in Dubai Economy reported on Saturday that 4,692 Instant Licenses were issued since the launch of the service in July 2017 to date.

Among the Instant Licenses issued, 3,448 (73.5%) were commercial and 1,244 (26.5%)in the professional category.

The Instant License service provides a convenient model for businessmen who can now obtain a commercial license within five minutes, enabling them to establish and conduct business in Dubai easily. The initiative is a path-breaking service whereby businesses can secure their commercial license in one-step for the first year without having a company’s lease or location.

All business activities can benefit from the service, except public and private shareholding companies, through eServices (ded.ae/instant), the various outsourced service centers in Dubai, or the Happiness and Smart Lounges. Holders of general trade licenses can only use electronic services. All business partners or one of them must be present while applying through the outsourced service centres or the Happiness Lounge and must provide a valid passport copy of all parties (partner and manager), residence visa copy and no-objection letter from the sponsor to the foreign parties.

The Instant License offers the option of an electronic Memorandum of Association (eMOA), in addition to obtaining the license and entry in the Dubai Economy commercial registry.

The licensee is also given membership in the Dubai Chamber instantly, an establishment card of the General Directorate of Residency & Foreigners Affairs as well as three work permits for employees from the Ministry of Human Resources & Emiratisation once the trade license is issued.

Registration of ‘Native’ workers

The registration of ‘Native’ workers in the Ministry of Human Resources & Emiratisation is done while issuing the Instant License. If the partners wish to appoint the employees before the issuance of the Instant License, they need to follow a few simple steps or else skip the screen and complete the procedures.

The number of Instant License owners has reached 16,935 and 87.6% (14,842) of them are men while women account for 12.4% (2,093). The businessmen who secured the Instant Licenses so far include those from Britain, Turkey, Saudi Arabia, India, China, Pakistan, Egypt, Jordan, and Sudan.

An Instant License can be obtained for four legal forms of businesses - Limited Liability Company (LLC), Single Member LLC, Sole Proprietorship and Civil Company.
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VAT refund made easier: Tourists can now claim Value Added Tax at shopping malls and hotels in UAE Tourists are now able to take VAT refund at kiosks within 24 hour of their departure

SOme 55 Self Service Tax refund kiosks are being installed in hotels and shopping malls across the UAE

Dubai: Tax refund on shopping has been made easier for tourists to the UAE.

Tourists can now reclaim their taxes on shopping from the Self-Service Kiosks which will be set up at major shopping malls and hotels across the country.

“The Value Added Tax (VAT) Recovery Self-Service Kiosks for Tourists scheme has been expanded to be available at major shopping malls and hotels, in addition to the existing ones at air, land, and maritime entry and exit ports across the UAE,” announced the Federal Tax Authority, (FTA).

The FTA last year had introduced the self-service kiosks across all ports to allow tourists to recover Value Added Tax (VAT) when leaving the UAE.

Expansion

The expansion aims to provide additional services to tourists, enhancing the UAE’s status as a leading destination on the international tourism map. Planet- the company authorised by the FTA to operate the electronic system for the Tax Refunds for Tourists Scheme launched nine self-service kiosks in stage one of implementing the plan, setting them up at multiple shopping malls and hotels.

The kiosks are equipped with state-of-the-art technology allowing them to fully process VAT refund requests for tourists.

Tax refund within 24 hours of departure

In a statement, the FTA explained that the kiosks allow tourists to process their requests to recover VAT from the convenience of their hotel or at major malls in a matter of minutes. Applicants can scan their boarding pass to prove they will be leaving the UAE in the next 24 hours, as well as their original passport (or identity card for GCC nationals), and then follow the simple instructions displayed at the self-service kiosks.

55 new kiosks

The FTA revealed that Planet intends to deploy up to 55 new self-service kiosks by the end of 2020. Some 25 of the kiosks will be stationed in malls and 30 in hotels.

FTA Director General Khalid Ali Al Bustani said that expanding the scope of self-service kiosk for the tourists’ refunds to include malls and hotels in addition to exit ports was part of the Authority’s strategy to continuously develop its services, enhance efficiency and performance.

“Our objective from expanding the self-service kiosk is to provide further facilities and additional options for tourists looking to recover taxes,” he added. “Eligible tourists who meet the necessary criteria for reclaiming the VAT they incurred on their purchases in the UAE can process their refund applications from the convenience of their own hotels or from a list of major shopping malls around the country.”

Growing number of users

“This latest development further upgrades the services we offer through the electronic system of the Tourists Refund Scheme, which has seen increasing success and a growing number of users taking advantage of its speed and ease of use,” Al Bustani explained. “This establishes the system as one of our most effective tools to promote tourism, and cement the country’s status as a leading tourist destination with world-class infrastructure, sites, and events,” he noted.

The FTA Director General said that task forces from the Federal Tax Authority are conducting ongoing field inspections to ensure the system is operating in accordance with stringent quality standards and conditions, Wam reported.

More than three million refund transactions

The number of digital transactions under the Tourists Refunds Scheme grew to 3.2 million in the period between its launch in November 2018 and the end of 2019.

By end of June 2019, the total stood at 1.52 million transactions; the number leapt by .68 million applications in the second half of 2019, marking a staggering 110.53 per cent growth during that period.

Daily average number of tax refund transactions for tourists grew 2.64 times from 3,720 in the scheme’s first month to 9,830 daily transactions in December 2019.

The number of retail outlets linked with the system increased to 12,310 stores across the UAE, while the network of self-service kiosks allowing tourists to recover VAT at exit ports around the country grew to 52 up by 79.3 per cent from the total of 29 kiosks deployed as of July 2019.

Tourists can submit their requests to recover the taxes they incurred on purchases in the UAE when they are about to depart from the country.

What is required to get refund

Applicants must submit the tax invoices on their purchases, marked with Tax-Free’ stickers issued by retail outlets registered in the system, along with their passport and credit card.

No limit is placed on the maximum amount that can be recovered if said amount is transferred to the tourist’s credit card.

The  maximum amount is set at Dh7,000 per day for tax refund in case of cash payment.

This process can be carried out at self-service kiosks, as well as at tax refund offices located at ports of exit across the UAE.

The Authority asserted that to be refundable, tax invoices need to have been issued by the retail stores included in the Scheme and registered in the system; these venues can be identified by visibly showcasing ‘Tax-Free’ stickers on their storefronts.

Who can take claim refund

Any tourist shopping in stores located in the United Arab Emirates is eligible to reclaim a refund made on purchases provided that he or she fulfils certain conditions. 

Tourists who plan to apply for refunds must ensure that their purchases are from retailers that are participants in the “Tax Refund for Tourists Scheme”

The tourist in question must have the intention of leaving the UAE within ninety days from the day of purchase along with the products that bought.
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FTA ban waterpipes, cigarette plugs without digital tax stamps. Ban will come into effect on March 1, 2020

Shisha is a water pipe made of clay, ornately carved metals or plastics, which enables smoking flavoured tobacco as it is bubbled through water.

Abu Dhabi: Importing any type of waterpipe tobacco (known in Arabic as ‘Mu’assel’) or electrically heated cigarette plugs that are not marked with ‘Digital Tax Stamps’ will be prohibited across the UAE as of 1st March 2020, the Federal Tax Authority (FTA) announced on Tuesday.

The ban is in keeping with the timeline set for launching phase two of the ‘Marking Tobacco and Tobacco Products Scheme’, the FTA explained, adding that it serves to protect consumers from commercial fraud and low-quality products. The Authority called on producers, importers, and distributors of these products to abide by the system, as directed in Cabinet Decision No. 42 of 2018 on Marking Tobacco and Tobacco Products. The Stamps allow for tracking the designated products from the manufacturing facility and until they reach the end consumer, ensuring they satisfy the set standards and criteria, and have met their Excise Tax obligations.

In a press statement issued today, the Authority stressed the importance of implementing FTA Decision No. 02 of 2019 on Marking Tobacco and Tobacco Products, which went into effect on 1st November 2019. The Decision saw the Authority begin providing Digital Tax Stamps in collaboration with De La Rue, the company operating the system, allowing importers and producers of waterpipe tobacco and electrically heated cigarette plugs to place their orders for Stamps they could fix onto their merchandise to indicate that they have paid all Excise Taxes.

The FTA Decision stipulates that as of 1st March 2020, all Designated Excise Goods outlined in the Decision will no longer be allowed to be imported to the UAE unless they are marked with Digital Tax Stamps. Then as of 1st June 2020, any supply, transfer, stockpiling, or possession of these products will be banned unless they are marked with Digital Tax Stamps.

FTA Director-General Khalid Ali Al Bustani asserted that implementing phase two of the ‘Marking Tobacco and Tobacco Products Scheme’, which consists of expanding it to include waterpipe tobacco and electrically heated cigarette plugs, is a continuation of phase one, where the sale or possession of any type of cigarette not bearing the Digital Tax Stamps was banned across all local markets in the UAE as of 1st August 2019.

“The Scheme supports the FTA’s efforts to collect taxes, combat tax evasion, protect consumers from commercial fraud, prevent the sale of subpar products in local markets, and help protect the environment and public health,” he added. “The Authority is working to implement the system in collaboration with customs agencies and Departments of Economic Development. It relies on advanced, accurate, and efficient electronic procedures to ensure all legislation issued in that regard – which outlined the obligations of both the Authority and Taxable Persons – are implemented and that consumers are protected.”

“The Federal Tax Authority sought to execute a comprehensive awareness campaign to make sure local markets are prepared, well in advance, for implementing the second phase of the ‘Marking Tobacco and Tobacco Products Scheme’ as seamlessly as possible and without any disruptions to the sector’s commercial operations,” Al Bustani explained.

“The FTA collaborated with the system operator to organise meetings and workshops with importers, producers, and sellers of tobacco and tobacco products, where attendees were introduced to the tax system, and experts from the Authority answered their questions. Furthermore, media and advertising campaigns were carried out through traditional and social media channels to introduce the scheme and the timeline set for implementing it,” he added.

The FTA Director-General went on to reveal that the Authority has started organising a series of training programmes for inspectors from Departments of Economic Development and Customs Agencies across the emirates. The sessions introduce participants to the objectives and procedures of the Scheme, highlighting mechanisms to verify that all tobacco products in circulation have been marked with Digital Tax Stamps, which, in turn, tightens control and inspection at customs ports and markets to prevent the sale of contraband products or items where the due Excise Tax has not been settled.

The Authority explained that the Digital Tax Stamps are registered in the FTA database and electronically embedded with data that can be read using a dedicated device, which allows inspectors to verify that all taxes due on these products have been paid, and ensure that products are not counterfeit or illegally supplied.

Producers and importers of all types of waterpipe tobacco and electrically heated cigarette plugs can place their orders to purchase Digital Tax Stamps from the system operator – once they are accredited by the Authority – to place them on the packaging of their products before they leave the factory to be supplied to local markets across the UAE.

Cabinet Decision No. 42 of 2018 on Marking Tobacco and Tobacco Products outlined the mechanism for applying the Digital Tax Stamps on Designated Excise Goods to indicate that all due Excise Tax has been paid. The Decision stipulated that the Stamps must be fixed onto the products within the production facility immediately after packaging if produced locally – or prior to importing them in the case of imported tobacco products – in the place and manner specified by the Federal Tax Authority.

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Dubai Economy sees 34% rise in trademark cases. Trademark files to protect intellectual property reaches 5,157 in 2019

The Dubai Department of Economic Development building. Trademark files registered at the Commercial Compliance and Consumer Protection sector in Dubai Economy reached 5,157 in 2019 up from 3,844 a year earlier. t are turning to business advisories to unscramble and process information.

Dubai: Dubai Economy (also known as Dubai Department of Economic Development) said on Sunday it saw a 34 per cent increase of trademark filings in 2019 over 2018 to protect intellectual property.

Trademark files registered at the Commercial Compliance and Consumer Protection sector in Dubai Economy reached 5,157 in 2019 up from 3,844 a year earlier.

US brands led in terms of trademark files, accounting for 31 per cent of the total cases.

UAE brands came in next, with 16 per cent of total cases, followed by German brands.

Dubai Economy stated that the increase in trademark files indicates that brand owners are recognizing the importance of protecting their rights and Dubai Economy’s ability to do so.

Dubai Economy also received 298 complaints relating to trademark infringement in 2019, up 1 per cent year-on-year.

Perfumes were the leading category of goods involved in the complaints (35 cases), followed by cosmetics and personal care products (at 32 cases and 30 cases respectively).

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