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.
For more information regarding your Business Set-up/Tax/Audit/Accounting or other services please visit our website www.a-h-g.net or drop us an email on info@a-h-g.net

We are one of the leading Audit company present in 4 countries. Approved TAX Agent by the Federal Tax Authority and one of the very few Tax Agents who operates with Excise Tax and have a deep understanding for its needs which helps our clients comply with law requirements and Latest FTA Announcements.

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.

For more information regarding your Business Set-up/Tax/Audit/Accounting or other services please visit our website www.a-h-g.net or drop us an email on info@a-h-g.net

We are one of the leading Audit company present in 4 countries. Approved TAX Agent by the Federal Tax Authority and one of the very few Tax Agents who operates with Excise Tax and have a deep understanding for its needs which helps our clients comply with law requirements and Latest FTA Announcements.

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).

For more information regarding your Business Set-up/Tax/Audit/Accounting or other services please visit our website www.a-h-g.net or drop us an email on info@a-h-g.net

We are one of the leading Audit company present in 4 countries. Approved TAX Agent by the Federal Tax Authority and one of the very few Tax Agents who operates with Excise Tax and have a deep understanding for its needs which helps our clients comply with law requirements and Latest FTA Announcements.

Dubai consumers confident of economy improving this year 63% of consumers rated current job prospects as excellent/good

Dubai: Consumers in Dubai see improved job prospects and personal finances ahead, according to the quarterly business survey of Dubai Economy. The survey conducted during the last quarter of 2019 (Q4 2019) shows 75 per cent of consumers as confident of the employment situation improving during the next 12 months. Even when the Consumer Confidence Index showed a slight four-point decrease to 133 points from the previous quarter, 77 per cent of respondents were positive about their current personal finances and the percentage of those optimistic rose to 79 per cent when asked about the next 12 months.

Although job security is a major concern, 63 per cent of consumers rated current job prospects as excellent/good, while nearly half said they plan to cut down on outdoor entertainment and delay technology updates such as personal computers, mobile phones, etc. Job security remained the next biggest concern after the economy. Consumer perceptions are based on three aspects: job prospects, personal finances, and chances of buying things they need/want to buy.

The Q4 2019 survey showed 77 per cent of UAE nationals as optimistic about finding a job currently, with 22 per cent describing it as excellent, and 55 per cent as good. Among expats, 57 per cent expressed optimism about current job prospects, while 84 per cent nationals and 71 per cent among expats were positive on the chances of finding a job during the next 12 months.

Regarding current personal finances, 76 per cent of consumers expressed optimism. Among UAE nationals, 81 per cent of those surveyed showed optimism and that group comprised 22 per cent who rated their personal finances as excellent and 59 per cent who said they are good. As for expats, 12 per cent expressed optimism, with 63 per cent saying it looked good. Optimism seems likely to persist over the next 12 months for 79 per cent and reach 83 per cent among nationals and 76 per cent among expats.

When asked about buying the things they need and want to buy, 60 per cent expressed their satisfaction with the cost of things, whereas 79 per cent of nationals said they were excellent or good. The percentage decreased to 76 per cent among expats.

Perceptions on the economic situation in Dubai were highly positive among nationals at 77 per cent. More than half of the expatriates (56 per cent) also expressed optimism about the current economic situation while the overall percentage reached 63 per cent. The positive perception was largely due to the trade momentum and recovery of tourism, while the lack of employment opportunities and the lack of salary increases were among the main reasons for the negative perception.

Generally, there is optimism on the economy in Dubai as 74 per cent of UAE nationals and expatriates rated it to be excellent or good. The percentage of those who believe Dubai’s economy is in recession remained the same (25 per cent) as the previous quarter, while the percentage of consumers who expect the economy to recover during the next 12 months decreased from 55 per cent to 41 per cent.

Job security was the biggest concern during this quarter, with the percentage reaching 42 per cent among expats and 15 per cent among nationals. The economy ranked second on the list of major concerns for 16 per cent of expats and 9 per cent of nationals.

Most consumers (86 per cent) confirmed that they are able to meet basic life expenses and almost a third said they spend whatever money left on vacations or save them. Nearly half of consumers said they plan to reduce outdoor entertainment or delay technology upgrades such as personal computers or mobile phones, etc as part of balancing the family budget.

The Consumer Confidence Index captures a consumer’s individual perceptions on the economy as well as intentions and expectations for the future while also tracking consumer confidence over a specific period of time.

For more information regarding your Business Set-up/Tax/Audit/Accounting or other services please visit our website www.a-h-g.net or drop us an email on info@a-h-g.net

We are one of the leading Audit company present in 4 countries. Approved TAX Agent by the Federal Tax Authority and one of the very few Tax Agents who operates with Excise Tax and have a deep understanding for its needs which helps our clients comply with law requirements and Latest FTA Announcements.

FTA makes it easier for Emiratis to recover VAT on homes. Number of original documents to be submitted with application reduced to four

Abu Dhabi: The Federal Tax Authority, FTA, announced on Tuesday that it has launched a new platform on its website to streamline the process of recovering Value Added Tax, VAT, incurred by UAE citizens on the building of new homes.

Citizens who qualify for VAT recovery on newly-built homes will receive an email with a request to submit the necessary documents to complete the processing. After verification of the documents, the citizen is notified of his/her entitlement. If the refund amount matches the tax invoices provided, then — following final approval the refund amount is transferred to the applicant’s bank account.

In a press statement issued today, the Authority explained that the platform’s most notable new feature is that it allows applicants to apply for the VAT refund online by using the e-Services feature on the FTA website, instead of having to mail applications, as was the previous procedure. It noted that this would save time and expedite the VAT recovery process.

Furthermore, the number of original documents that need to be submitted with the application has been reduced to just four and include a copy of the applicant’s family book, a copy of the applicant’s Emirates ID, a building permit included in the certificate of completion issued by the municipality, and a document indicating the date from which the building has been occupied.

For more information regarding your Business Set-up/Tax/Audit/Accounting or other services please visit our website www.a-h-g.net or drop us an email on info@a-h-g.net

We are one of the leading Audit company present in 4 countries. Approved TAX Agent by the Federal Tax Authority and one of the very few Tax Agents who operates with Excise Tax and have a deep understanding for its needs which helps our clients comply with law requirements and Latest FTA Announcements.

VAT is universal for ecommerce transactions Scope for exceptions and tax evasion are limited

In UAE e-commerce (electronic sales and purchases) is subject to the standard 5 per cent value added tax (VAT).

As a transitional provision, all goods coming from GCC member countries are subject to VAT until the implementing state provisions becomes operational.

Physical goods and electronic services such as software, e-games, e-subscriptions, mobile phone applications and e-content are subject to specific rules that regulate how VAT applies to them.

(a) Sales & purchase of goods or services through e-commerce within UAE is considered as domestic sales and are subject to standard 5 per cent VAT rate.

(b) Purchase of goods or services from outside UAE, is subject to standard 5 per cent VAT rate.

(i) If recipient of goods or services is in UAE and registered for VAT (as a taxable person), then in this case recipient of goods or services is expected to calculate the standard 5 per cent VAT using reverse charge mechanism, whereby the taxable recipient calculates the due VAT instead of the non-resident supplier.

(ii) If the recipient is the end consumer (i.e. not registered with tax authority for VAT), then standard 5 per cent VAT is charged and paid to the authority by the agent or logistic company. Agent (who supplies/imports) will be responsible for compliance of UAE VAT for all imports on behalf of not registered individual.

Alternatively, the non-resident supplier must register in UAE for VAT purposes, regardless of supply volume.

Compliance on import of goods is aligned and governed through customs automated process and difficult to by-pass the process.

Software, e-games etc

When it comes to services such as software, e-games, e-subscriptions, mobile phone applications and e-content, there are implementation challenges across the world and tax authorities are gauging the trend & increasing surveillance on tax offenders. These are getting controlled through payment gateway monitoring & licensing protocol, e-commerce IP Address monitoring for allowing access to the website in country or not.

For more information regarding your Business Set-up/Tax/Audit/Accounting or other services please visit our website www.a-h-g.net or drop us an email on info@a-h-g.net

We are one of the leading Audit company present in 4 countries. Approved TAX Agent by the Federal Tax Authority and one of the very few Tax Agents who operates with Excise Tax and have a deep understanding for its needs which helps our clients comply with law requirements and Latest FTA Announcements.

Federal Tax Authority records rise in tax registered businesses Some 539 applications valued at about Dh23.74m were approved until end-June 2019

Abu Dhabi: The Federal Tax Authority has revealed that the number of tax registered businesses has increased thanks to the growing awareness among business sectors, and the ease and flexibility of electronic tax procedures available through the Authority’s official website, which was developed during the year 2019.

Khalid Ali Al Bustani, Director General of the Federal Tax Authority (FTA), stressed that 2020 will witness further development to the online services, as part its efforts to manage, collect, and implement taxes.

Al Bustani added that the continuous development of FTA services aim to maintain the best quality standards in light of having a fully electronic tax system that is the first of its kind regionally. He noted that the number of businesses registered with the authority through individual registration or a tax group increased to about 312,000.

According to FTA statistics, the total number of refund requests received through the tax recovery mechanism for the construction of houses amounted to 2,366 applications until December 2019, 1474 of which were approved for citizens who recovered the tax they paid for building their homes with a total value of Dh84.07 million, while legal measures are being taken regarding other requests submitted to the authority.

Some 539 applications valued at about Dh23.74 million were approved until the end of June 2019, with a record semi-annual growth of 254.18 per cent in the value of the recovered tax and 173.5 per cent in the approved applications.

During the past six months, 935 new applications were approved at a value of about Dh60.33 million, and the monthly average number of approved applications were 154 applications, while the average value of the tax recovered for citizens about building their new homes amounted to Dh10.1 million.

For more information regarding your Business Set-up/Tax/Audit/Accounting or other services please visit our website www.a-h-g.net or drop us an email on info@a-h-g.net

We are one of the leading Audit company present in 4 countries. Approved TAX Agent by the Federal Tax Authority and one of the very few Tax Agents who operates with Excise Tax and have a deep understanding for its needs which helps our clients comply with law requirements and Latest FTA Announcements.