Federal Tax Authority Launches 4-Day Awareness Campaign in Abu Dhabi Markets on Sunday

Press release
Published February 3rd, 2019 - 06:41 GMT
Khalid Ali Al Bustani, FTA Director General
Khalid Ali Al Bustani, FTA Director General

The Federal Tax Authority (FTA) is preparing to launch an awareness campaign on Tax Invoices tomorrow (Sunday, February 3, 2019) in Abu Dhabi markets, urging all businesses registered for Value Added Tax (VAT) to issue tax Invoices on all sales to protect consumer rights.

The FTA had launched the campaign on January 28, in collaboration with Departments of Economic Development and other relevant entities in the UAE, in an attempt to establish direct contact with consumers and retailers and introduce them to the legal requirements and conditions for Tax Invoices.

Carrying the slogan “your Tax Invoice: Your Right”, this phase of the campaign was organised in coordination with the Department of Economic Development - Abu Dhabi and is set to take place over the course of 4 days this coming week, covering a majority of commercial zones in the city of Abu Dhabi, before moving on to Al Ain and Al Dhafra next week, and then over to the rest of the UAE on a weekly basis throughout the first quarter of 2019.

In a press statement issued today, FTA Director General His Excellency Khalid Ali Al Bustani said that the new campaign is part of the Authority’s wider plans to promote tax compliance, combat tax evasion, and raise awareness of the tax system across all relevant sectors.

“The campaign is part of the Federal Tax Authority’s efforts to promote Tax Invoices for all commercial transactions and spread tax awareness among consumers regarding their tax rights and obligations, and protect them from any attempts at manipulating the tax system,” H.E. added. “It coincides with the ‘Tax Clinic’ campaign, which was launched last August to establish constant communication with businesses, and is still taking place across the country to raise awareness, as well as to identify and resolve any obstacles business may face.”

The Authority noted that the campaign, which targets the retail sector, includes inspections at stores to ensure all businesses subject to VAT or Excise Tax are complying with regulations to display full prices (inclusive of tax) on goods and services to avoid administrative penalties. The Authority called on consumers and service recipients in the UAE to learn their rights with regards to taxes and to adhere to them, noting that prices displayed on items – or announced for provided services – should be inclusive of all taxes. The displayed price should be the total amount that consumers will pay upon receiving the Tax Invoice, which should include the full price, followed by a detailed breakdown outlining the original price and the value of the imposed tax.

The FTA also called on consumers to insist on receiving a Tax Invoice when making purchases at any retail outlet subject to VAT, in order to combat any attempts at profiteering and exploitation of the tax system.

The Authority went on to clarify that a simplified tax invoice must include the following: The term “Tax Invoice” on the bill; the name and address of the registrant supplier and their TRN; the date of issuance of the tax invoice; the description of goods or services supplied; the total amount due; and the amount of tax charged. Prices must be inclusive of taxes, and all amounts converted to UAE dirhams at the rate of exchange approved by the UAE Central Bank. The taxpayer can issue a simplified Tax Invoice if the recipient or receiver is not registered in the tax system; or if they are registered but the amount does not exceed AED10,000.

Background Information

Federal Tax Authority

By virtue of this Federal Law by Decree a public federal authority shall be established under the name of the Federal Tax Authority. The headquarters of the authority shall be located in the city of Abu Dhabi. The authority shall be in charge of managing and collecting federal taxes and related fines, distributing tax-generated revenues and applying the tax-related procedures in force in the UAE.

The authority shall be managed by a board of directors chaired by the Minister of Finance and a sufficient number of members to be appointed and remunerated by a Cabinet resolution, based on the chairman’s nomination. The authority shall have an independent annual budget that shall be deemed as public funds and exempted from all taxes and fees.

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