The Federal Tax Authority (FTA) in the UAE

The Federal Tax Authority (FTA) in the UAE

Scritto da MP

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Categorie: News

Pubblicato il June 27, 2023

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  • About the FTA
  • E-services
  • FTA contact details

In any country, taxes are a medium to generate the revenue needed to support services required by citizens and residents. While most of the UAE’s revenue comes from its oil reserves, taxes are levied to reduce the country’s dependence on oil and diversify the country’s resources. They are also important for the government to continue providing its citizens and expats with exceptional public services. The Federal Tax Authority, or FTA, is the regulatory body for collecting and implementing taxes in the UAE.

ABOUT THE FEDERAL TAX AUTHORITY

Pile of UAE Dirhams
The Federal Tax Authority (FTA) was established in 2016

The Federal Tax Authority was established by virtue of Federal Law Decree No. 13 of 2016. It was issued by the President of the UAE, H.H Sheikh Khalifa bin Zayed Al Nahyan. The Federal Tax Authority, or FTA, has offices in Dubai and Abu Dhabi.

Five main points serve as the mission of the FTA:

  • Promoting economic growth and sustainability in the UAE
  • Increasing the UAE’s revenues apart from oil
  • Reducing dependence on oil as the major source of revenue
  • Achieving economic diversification with best financial practices
  • Helping the business community and consumers understand their tax responsibilities

Additionally, the Federal Tax Authority imposes taxes on products and behaviours that may be detrimental to society or human health. It also imposes fines on consumers and businesses that fail to pay or report their taxes on time.

TAXES IMPOSED BY THE FEDERAL TAX AUTHORITY

Man calculating taxes
There are two types of taxes in the UAE

Basically, two types of taxes are imposed by the FTA:

  • Value Added Tax
  • Excise Tax

Value Added Tax, or VAT, is an indirect and transaction-based tax that is applicable at every stage of the supply chain. The cost of VAT is usually borne by the final consumer, whereas registered businesses collect the tax on behalf of the FTA. This tax goes a long way towards providing high-quality services to all UAE residents.

The second type of tax, excise tax, applies to goods that are harmful to human health, such as tobacco products and carbonated drinks. All businesses that are involved in the import, production or release of such goods have to register with the Federal Tax Authority Dubai or Abu Dhabi office.

E-SERVICES OF THE FEDERAL TAX AUTHORITY

Poster of value added tax
You can register your account on the e-services portal of the FTA

The Federal Tax Authority has a list of comprehensive and helpful e-services that help businesses register and file their tax returns much more efficiently.

Some of the key e-services include:

  • VAT registration
  • VAT amendment
  • VAT de-registration
  • VAT & Excise tax import declaration
  • VAT & Excise tax refunds
  • VAT & Excise tax returns
  • Payment of fines and issuance fees

You can register your account on the e-services portal on the Federal Tax Authority website, to avail their various services and access information regarding the tax system of the UAE.

 

 

If you wish to stay informed about developments and fiscal news in the United Arab Emirates, you can contact us and schedule an appointment with the most suitable professional for your specific case, using the following Schedule.

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