Federal Tax Authority Hosts a Workshop for Sharjah Economic Development Department Inspectors

The Federal Tax Authority (FTA) has organised an awareness and training workshop for inspectors at the Sharjah Economic Development Department (SEDD) titled “Objectives and Procedures for Implementing Value Added Tax” as part of its intensive awareness programme to raise awareness among stake holders.

The session adds to the Authority’s series of activities to raise awareness and enhance inspection practices related to implementing tax system in the UAE, and targeting inspection teams in economic development departments and competent entities across all emirates. 

The FTA representatives thoroughly explained the services provided by the Authority to help Taxable Persons comply with Value Added Tax (VAT) regulations, which include rigorous inspection campaigns to protect consumer rights.

During the session, the Federal Tax Authority’s representatives answered participants’ enquiries, mainly regarding the mechanisms of implementing VAT; tax invoices criteria; taxable, exempt and zero-rated supplies of goods and services; tax registration number (TRN) verification; calculating the tax due on goods and services; VAT refund system for amounts paid by tourists during their visit to the UAE; and legal standards for free zones and designated zones.

The Authority’s representatives explained that a certain criteria should be met when issuing a tax invoice, including that registrants should issue an original tax invoice when making a taxable supply, “Tax Invoice” should be displayed in addition to the name and address of the registered supplier; name and address of the recipient if registered with the FTA; a sequential Tax Invoice number or a unique number which enables identification of the Tax Invoice and the order of the Tax Invoice in any sequence of invoices; issuance date and supply date if different from the date of issuing the tax invoice.

The representatives noted that the tax invoice should also include a description of the supplies or provided services; price, quantity and size of each unit; payable amount or the value of any discount; total payable amount; payable tax amount in Dirhams and the applied exchange rate in case the currency is exchanged into another currency other than UAE Dirham.

During the workshop, the FTA representatives explained that simplified invoices carrying basic information can be accepted if the purchase value is less than AED10,000 or if the person is not subject to tax and does not require a tax invoice.

The Federal Tax Authority launched its TRN verification service to allow consumers to verify the tax numbers on the invoices and that the merchants and service providers are registered with the FTA. The Authority also launched the VAT Calculator, which allows consumers and service recipients to easily know the amount of tax due on the prices of the purchases or services they obtain, to remain aware of their rights and actual dues in full transparency and in record time.

The workshop also acquainted participants with VAT implementation on businesses and how the VAT system deals with certain sectors, and highlighted frequently asked questions and common errors that might occur in the field of taxation.