UAE Federal Tax Authority Runs 3-Day Awareness Campaign for Fishermen’s Unions
- The Federal Tax Authority (FTA) organised a new awareness campaign targeting members of the UAE Fishermen’s Cooperative Union, where the Authority familiarised attendees with the procedures and objectives of implementing Value Added Tax (VAT), registering with the FTA, submitting tax returns, and paying due taxes.
The Federal Tax Authority reaffirmed that any natural or legal person conducting business in any economic or commercial sector in the UAE must register for VAT if their taxable supplies exceeded AED375,000 in value during the previous 12 months – or are expected to exceed that amount in the coming 30 days – noting that Taxable Supplies are identified as all supplies of goods and services made by a Person that are not explicitly exempt in the law, in addition to imported goods and services.
FTA Director General His Excellency Khalid Ali Al Bustani asserted that the awareness campaign has met with great success, adding that it was part of a larger series of seminars and workshops targeting all sectors, which seek to educate taxpayers about the requirements and procedures for VAT registration and compliance.
The campaign shed light on the benefits of registering for VAT, such as allowing businesses to refund the taxes they incurred during their production, trade or service activities, H.E. Al Bustani said. Fishermen can refund taxes they incurred on the purchases related to their profession such as fishing equipment, he cited as an example, noting that all businesses registered for VAT are required to collect VAT on their supplies of goods and services, while being eligible to refund taxes incurred on goods and services related to their profession. They must however keep commercial records that allow the FTA to verify their transactions, H.E. reminded.
In a press statement issued today by the Federal Tax Authority, H.E. Al Bustani said that the campaign attracted fishermen and stakeholders from the vital sector. Organised as a collaboration between the FTA and the UAE Fishermen’s Cooperative Union, the campaign is part of the Authority’s efforts to coordinate with its strategic partners in the public and private sectors, and ensure the best possible implementation of tax legislation. During the tour, FTA experts addressed fishermen’s enquiries about tax registration, submitting tax returns, and respecting deadlines to avoid administrative penalties.
The three-day campaign saw FTA experts speak to representatives of fishermen’s unions in Abu Dhabi, Al Ain, Dubai, Sharjah, Fujairah, Ajman, Khorfakkan, Dibba, Ras Al Khaimah, and Umm Al Quwain. The experts introduced attendees to the VAT implementation process, the facilities provided by the Authority, the correct procedures to issue invoices and keep records, and the right to seek assistance from certified tax agents.
The 5% VAT that went into effect on January 1, 2018, and is applied on the majority of goods and services, constitutes an indirect consumption tax, they explained, noting that the 5% rate implemented in the UAE is the lowest among 160 countries around the world that collect VAT. The experts went on to explain that Value Added Tax does not affect businesses at all, seeing as they can recover the taxes they paid through their tax returns.
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.