UAE Federal Tax Authority Publishes 2019 Guide

The UAE Federal Tax Authority, the government entity responsible for the administration, collection and enforcement of federal taxes, was established in 2016 by the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, via Federal Decree-Law 13 of 2016.

Clarifications are used when there is a question about the VAT Law and how it will apply in a certain case. The main change with the new guide is the extension of the time limit required for receiving a Clarification upon submission of all relevant information and documents to the FTA, from 40 business days to 45 business days.

There is further an additional paragraph which explains that if a case is very complex, for e.g. the FTA may have to consider other legislation or contractual or factual information, then a further 45 business days may be required.

The UAE’s citizens and residents enjoy exceptional public services, such as healthcare, roads, education, parks and social services. The full cost of these services is paid for by the government.

The introduction of VAT and Excise taxes will help the UAE diversify sources of revenue so that government departments can continue to deliver excellent public services and ensure a high quality of life for coming generations.

This is also in line with a key pillar of the UAE’s Vision 2021 – The Sustainability of Infrastructure – more information about which can be found here.

In essence, for complex cases, the FTA may require 90 business days from the date of the initial submission to determine a case.