FAQ's
Frequently Asked Questions
Managing finance is one of the crucial aspects for small as well as mid-sized businesses, but many of them fails to do so. This becomes the cause of huge business failure. The insufficient accounting can hurt the bottom line in following ways:
- Huge loss of revenue because of poor planning
- Fines, legal actions and penalties
- Lots of unused financial openings
The monthly accounting process followed by our best accounting experts focuses on the source documents. Furthermore, our accounting experts assemble the data and report it with monthly profit and loss statements as well as monthly balance sheets. It also includes regular account reconciliation and advices related to financial statements, and business’s situation with tax planning. Our best financial reporting in Dubai provide business tax work, sales tax filings and audit representation.
Our best virtual accounting services makes us stand alone in the crowd. Our staff care for your business and its success. Our best financial reporting in Dubai provide business tax work, sales tax filings and audit representation. This approaches helps us maximize the profit of client’s business.
If you want to get in touch with our staff, feel free to reach out.
There are different factors which play role in the selection of monthly or annually accounting service. First of all, you have to see if your business is a right fit for monthly accounting service, then you must go for it. It can surely provide your business more value.
On the other hand, if you want solutions based on price alone, then annual accounting is good to go. Furthermore, for maximizing business profit you need to understand the importance of numbers. It is obvious that the number checked on monthly basis is beneficial as compared to annual one.
Based on your business, you can consult with our experts for having clear idea.
It is necessary to understand that everything have some pros as well as cones. So, there must be some pros of local accounting and some cones as well. Same goes with online accounting. In order to get the best for your business, it is important to learn the difference between local and online accounting.
If you can trust local vendors, you must trust virtual accounting companies as well. In case of virtual accounting companies, you must take care of quality works rather than lowest price packages.
If you are thinking to switch the accounting firm, you must get over your fears and move on. Answer your fears to know if the decision is right or wrong. Also, get over your hesitation and feel free to discuss your mess with experts, with the aim of maximizing your profit.
For moving forward, you need to follow the basic steps. It includes the search of reliable virtual firm and informing your current accounting firm about it. In the last, you are supposed to set new and effective goals for new accounting firm.
Our primary focus is on Xero and QuickBooks Online. In case. You want us to work with other systems, we can work accordingly to fulfil your needs. At the time of placing order, you should discuss this aspect with our staff for better coverage.
The experts of VAT management consultancy can file multiple years of back taxes. So if you are not filing your taxes, we are here. As a business owner, you need to understand the importance of updated taxes. You can only get accurate accounting when taxes are up-to-date. So, we provide quality service from start till end.
We are dedicated to records everything accurately. We are also aimed to get you financial statements on time. We also work for back taxes for payrolls. So, you can get multiple services at our one platform.
Based on the need of your company, we have different pricing of monthly accounting service. Make it clear that we do not offer different packages based on the size of business, but nature of task and complexity.
The average package we offer is around 750 AED per month. Other than the average package, we have range of 500 to 1500+ AED per month. We always try to bring the best for you.
In order to meet the best end results, we are supposed to get the access to your online accounts. After that, we source documents as per the need of the hour. There are multiple documents required including following:
- Inventory
- Business bank and credit card statements
- Accounts payable and receivable
- Sales systems (POS)
- Accounting software
In order to maximize the profit of your business, it is important to look after multiple aspects. If you will handle everything by yourself, then you may not be able to get the best out of everything. So, it is better to go for accounting and bookkeeping firms in Dubai for handling accounting related tasks. In this duration, you can handle the rest of things efficiently.
Why not! The audit representation is a part of service and included in monthly fee as well. We only charge for audit representation when you are not our client.
VAT management consultancy provide high support to our clients. You can handle all issues with our assistance and there would not be any need of going to tax court. You can also get rid of issues related to sales tax audit.
A corporate tax is a tax on the profits of a corporation. The taxes are paid on a company's taxable
income, which includes following aspects:
- Revenue minus cost of goods sold (COGS)
- General and administrative (G&A) expenses
- Selling and marketing
- Research and development
- Depreciation
- Other operating costs
- Creating a Level Playing Field: The implementation of corporate tax ensures a fair and equitable business landscape, where all companies operating within the jurisdiction contribute their rightful share of taxes. This fosters healthy competition and bolsters the overall economic environment.
- Fueling Government Services:Corporate tax plays a pivotal role in financing an array of essential services and infrastructure provided by the government. These include the development of roads, schools, and healthcare facilities, which ultimately benefit the business climate of the country and pave the way for increased opportunities.
- Enhancing Credibility:Paying corporate tax not only fulfills legal obligations but also boosts a company's credibility and reputation. It showcases a commitment to adhering to regulations and actively contributing to the community's growth and welfare.
As of 2021, a remarkable consensus has been reached, with over 139 countries participating in a final political agreement for international tax reforms. This agreement ensures that companies worldwide pay a minimum effective tax rate of 15%. These countries, collectively constituting 90% of the global economy, have taken this crucial step toward establishing a fair and standardized approach to corporate taxation.
Among the six Gulf Cooperation Council countries, Saudi Arabia currently imposes the highest corporate tax rate at 20%. Following suit, Oman and Kuwait have set their rates at 15%, while Qatar maintains a rate of 10%. Joining this league, the United Arab Emirates (UAE) will commence implementing a corporate tax rate of 9% on business profits from June 1, 2023.
The UAE has passed legislation mandating the implementation of Federal Corporate Tax ("Corporate Tax"). Accordingly, all businesses operating within the UAE will become subject to this tax starting from the commencement of their first financial year, beginning on or after June 1, 2023.
To prepare for the implementation of Corporate Tax (CT) in the UAE, businesses should follow these steps:
- Check the websites of the Ministry of Finance and the Federal Tax Authority for information on whether your business will be subject to Corporate Tax and the effective date.
- Understand the requirements of the Corporate Tax Law for your business, such as:
- Determine if and when your business needs to register for Corporate Tax.
- Assess the current status of your books of accounts.
- Evaluate the impact of Corporate Taxation on your business operations and cash flows.
- Determine the financial year of your business.
- Identify the deadline for filing a Corporate Tax return.
- Explore any necessary or recommended applications for Corporate Tax purposes.
- Determine the financial information and records your business must maintain for Corporate Tax purposes.
According to the Corporate Tax (CT) law, a Resident Person includes the following:
- Companies and other juridical persons/entities incorporated or recognized under the UAE laws, such as LLC and PJSC. This applies to entities established under mainland legislation or applicable Free Zone regulations.
- Foreign companies that are effectively managed and controlled in the UAE. This determination considers specific circumstances, with a focus on where key management and commercial decisions are made.
- Natural persons/individuals earning income (including their share of income in unincorporated partnerships) from both domestic and foreign sources, provided that the income is derived from a Business or Business Activity conducted in the UAE.
A Non-Resident Person is defined as follows:
- A juridical person is considered non-resident if it is incorporated, managed, and controlled outside the UAE.
- A natural person is considered a non-resident if they are not engaged in taxable business or business activity in the UAE.
Non-Resident Persons will be subject to Corporate Tax (CT) if they meet either of the following conditions:
- They have a Permanent Establishment in the UAE.
- They derive State Sourced Income.
A Permanent Establishment (PE) encompasses a branch or a place of management. It includes a Fixed Place PE, which refers to a permanent location for conducting business. Additionally, there is the Dependant Agent PE, where a person habitually exercises the authority to conclude contracts on behalf of non-residents. It's important to note that a fixed place of business would not be considered a Permanent Establishment if its sole purpose is to store, display, or deliver goods or merchandise belonging to the foreign person or to perform preparatory or auxiliary activities.
A Taxable Person can be classified as either a Resident Person or a Non-Resident Person. A Resident Person is subject to taxation on income derived from both domestic and foreign sources. On the other hand, a Non-Resident Person is only taxed on income derived from sources within the UAE.
The following entities are exempt from Corporate Tax (CT):
Government and government-controlled entities.
Extractive businesses, which involve the exploitation and production of natural resources, as well as non-extractive businesses involved in processing, storing, marketing, and transporting natural resources. However, they need to meet the conditions set by the Ministry of Finance (MOF).
Qualifying Public Benefit Entities, which exclusively operate for religious, charitable, educational, environmental, animal protection, and similar purposes.
Qualifying Investment Funds, including Real Investment Trusts and Incorporated Partnerships, provided they are subject to regulatory oversight.
Public or private pension and social security funds.
Entities incorporated in the UAE that are wholly owned and controlled by certain exempt persons, subject to meeting the conditions specified by the MOF and the Federal Tax Authority (FTA).
Tax Groups are formed by resident juridical persons, including both the parent company and its subsidiaries, who share the same Financial Year and utilize the same accounting standards for their financial statements. To establish a Tax Group comprising two taxable persons, the parent company needs to meet certain conditions:
- Possess a minimum of 95% share capital in the subsidiary
- Maintain a minimum of 95% voting rights in the subsidiary
- Be entitled to at least 95% of the subsidiary's profits and net assets.
- It is important to note that a Tax Group cannot include an Exempt Person or a Qualifying Free Zone Person.
VAT, also known as Value Added Tax, represents an indirect tax scheme often referred to as a general consumption tax. Found in numerous countries worldwide, VAT is levied on the majority of goods and services exchanged through buying and selling transactions.
Within the supply chain, VAT is applied at each stage, making it a cumulative tax burden ultimately shouldered by end consumers. Businesses undertake the responsibility of collecting and accounting for VAT, effectively functioning as tax collectors on behalf of the government.
As businesses collect VAT from customers, they remit the tax to the government while potentially receiving refunds for VAT paid to suppliers. Consequently, government tax revenue reflects the added value throughout the entire supply chain.
A residential building encompasses any structure or part thereof specifically designed and intended for individual habitation. It primarily includes buildings suitable for use as the primary place of residence by any individual. However, the following categories are excluded from this definition:
Any non-permanent structure capable of relocation without incurring damage.
Buildings utilized as hotels, motels, bed and breakfast establishments, hospitals, or similar establishments.
Serviced apartments that offer supplementary services alongside accommodation.
Buildings that have been constructed or converted without proper legal authorization.
Any building which do not serves the purpose of residential building is considered as commercial one. It include warehouses, shops and other buildings of same category.
The initial supply of a newly constructed residential building within the first three years is subject to zero-rated VAT. On the other hand, the subsequent supplies are tax-free.
When it comes to commercial properties, VAT plays a role of significance. Every supply involving commercial buildings, or even parts thereof that are not residential, attracts a VAT rate of 5%. Therefore, this taxation extends to all non-residential structures within the realm of commercial real estate.
While both VAT and Sales Tax fall under the umbrella of consumption taxes, there are distinct dissimilarities between the two. While the general public may not always discern these disparities, they exist nonetheless. In numerous countries, sales taxes are solely imposed on transactions pertaining to tangible goods. Conversely, VAT encompasses both goods and services, and it is applicable throughout the supply chain, right up to the final sale. Moreover, VAT is levied on imports of goods and services, ensuring equitable treatment for domestic providers in the market.
VAT tends to be favored by many nations for various reasons. Notably, VAT is viewed as a more sophisticated approach to taxation since it delegates the responsibility of tax collection to businesses, thereby curbing misreporting and tax evasion.
Owners of residential buildings who solely engage in exempt supplies are not obliged to register for VAT, provided they do not have any taxable business activities. However, if these owners conduct taxable business activities, they should carefully assess their obligations.
On the other hand, owners of non-residential properties are required to register for VAT if the value of their supplies over the preceding 12 months exceeds AED 375,000, or if it is anticipated that the value will surpass AED 375,000 within the forthcoming 30 days.
The UAE Federal and Emirate governments provide their citizens and residents with a wide range of public services, such as hospitals, roads, public schools, parks, waste control, and police services. These services are financed through government budgets. By introducing VAT, the UAE gains a fresh revenue source that contributes to the continuous provision of high-quality public services in the future. Moreover, it aids the government in its pursuit of reducing reliance on oil and other hydrocarbons as a revenue stream, aligning with their long-term vision.
The UAE is one of the part of Gulf Cooperation Council (GCC). This council is working as per two main agreements, mentioned below:
The Economic Agreement Between the GCC States
The GCC Customs Union
All the nations collaborate for designs and policies for further implementations. This approach helps the whole region to get the effective results.
The standard rate of VAT in the UAE stands at 5%.
The collection of VAT is accomplished through a meticulous process undertaken by the government. It places the responsibility on businesses to maintain thorough records of their business income, costs, and the associated VAT charges. In adherence to this, registered businesses and traders levy VAT on all their customers at the prevailing rate, while also incurring VAT on the goods and services they procure from suppliers. The disparity between these amounts is either reimbursed or remitted to the government.
VAT, being a comprehensive consumption tax, is levied at a standard rate of 5% on all transactions involving goods and services, unless specifically exempted under Article 46 of the Federal Decree-Law No. (8) of 2017 on Value Added Tax, or subjected to a 0% rate as outlined in Article 45 of the Federal Decree-Law. In case of queries, you can get assistance from best vat consultants in Dubai.
The government has implemented measures to ensure that businesses do not exploit the introduction of VAT as an opportunity to unreasonably raise prices. VAT plays a crucial role in making the economic foundation of nation. On the other hand, the regulations are made for having transparent information. Resultantly, the effective decisions can be made for business dealings.
Access the FTA e-Services portal by visiting the E-SERVICES section, and proceed to the VAT section's EDIT option. Here, you can enter your Customs Registration Number, and the system will automatically update your records to reflect this information.
If you have been assigned a "Provisional TRN" and have received an email communicating this to you, rest assured that the Tax Registration Certificate will be provided by the FTA once they have thoroughly reviewed your application. Please be patient as they complete the necessary steps. Value added tax consultant in Dubai can give you great favor in it.
After the subsequent supply the residential portion of building is divided into two categories. It include zero-rated as well as exempt. On the other hand, there is commercial building which is subjected to 5% of VAT.
Tax that cannot be directly attributed to either exempt or taxable supplies must be apportioned accordingly. Only the portion that pertains to taxable supplies, specifically those subject to a VAT rate of 0% or 5%, may be recovered.
Registering for Value Added Tax (VAT) is a crucial step for businesses, triggered by surpassing the mandatory registration threshold of AED 375,000 in taxable supplies and imports. However, even if a business falls below this threshold, there's an option for voluntary registration. By registering voluntarily, businesses can seize opportunities when their supplies and imports exceed the voluntary registration threshold of AED 187,500. Additionally, if a business's expenses go beyond this threshold, they can still opt for voluntary registration. This provision is specifically designed to empower start-up businesses with no turnover to initiate their VAT registration process. VAT advisory services Dubai can help you in case of any query.
VAT-registered enterprises typically bear the following responsibilities:
Imposing VAT on taxable products or services they provide.
Recovering any VAT paid on business-related goods or services.
Maintaining a comprehensive set of business records associated with VAT, including tax invoices.
Periodically submitting VAT returns to report their taxable supplies and purchases.
By fulfilling these obligations, businesses effectively navigate the realm of VAT while optimizing their financial operations.
Preparing for VAT: Essential Steps for Businesses to Ensure Compliance
This includes evaluating the implications of VAT on core operations, financial management, bookkeeping practices, technology systems, and even the composition of their human resources, such as accountants and tax advisors. It is crucial for businesses to strive for a comprehensive understanding of the VAT implications and make diligent efforts to align their business models with government reporting and compliance requirements.
Businesses are required to initiate the VAT registration process within a specific time frame.
It is necessary to submit application to FTA within 30 days of fulfilling the registration requirements. The application for registration can be conveniently completed online through the dedicated e-Services Portal on the FTA's official website.
VAT Returns: Meeting Filing Deadlines for Registered Businesses
Registered businesses are obligated to file VAT returns on a regular basis, ensuring timely compliance with tax regulations. VAT returns must be filed with the FTA within 28 days following the end of the Tax Period. To simplify the process, businesses are encouraged to utilize the FTA's online platform, e-Services, to submit their tax returns conveniently and efficiently.
Maintaining Records: Vital Obligations for Businesses and Time Requirements
To enable the Federal Tax Authority to effectively review business activities and transactions, businesses are required to maintain accurate and comprehensive records. The specific documents that must be maintained, along with the duration of record retention, are stipulated in Federal Law no. (7) of 2017 on Federal Tax procedures and Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures.
VAT Invoices: Minimum Duration for Retention by Taxable Persons
Every taxable person is mandated to retain VAT invoices that have been issued or received for a minimum period of 5 years. This ensures that adequate records are available for reference and review as required by the tax authorities.
Determining the Place of Supply: Critical Considerations for Businesses
Determining the place of supply is pivotal in determining the applicable VAT regulations for businesses. In most cases, the place where goods are located when they are supplied determines the place of supply. However, different rules may apply to specific types of supplies like water, energy, and supplies across borders. Regarding services, the general rule is that the place of supply should match the location where the supplier is based. Nevertheless, special rules exist for particular categories of supplies, like catering services, where the place of supply is determined by the actual location where the services are performed.
Customs Duty and VAT Payments: No Offsetting Permitted
It's important to note that customs duty and VAT payments are treated separately. Businesses cannot offset customs duty against VAT payments. VAT is calculated based on the total value, which includes customs duties, and is paid in addition to any applicable customs duties.
Real Estate Treatment: VAT Implications for Commercial and Residential Properties
The treatment of real estate for VAT purposes depends on whether the property is classified as commercial or residential. Supplies, including sales or leases, of commercial properties are subject to VAT at the standard rate, currently set at 5%. Conversely, supplies of residential properties are generally exempt from VAT. This exemption ensures that individuals purchasing their own properties are not burdened with irrecoverable VAT costs.
Certain sectors will enjoy the privilege of being zero-rated under VAT, implying that no VAT will be charged on their supplies. Here are the main categories that fall under this zero-rating treatment:
Exports of goods and services to destinations outside the GCC.
International transportation services and any related supplies.
Supplies involving specific means of transport, including sea, air, and land vehicles like aircraft and ships.
Certain investment grade precious metals, such as gold and silver of at least 99% purity.
Newly constructed residential properties that are being supplied for the first time within three years of their construction.
Supply of particular education services, along with the supply of relevant goods and services.
Supply of specific healthcare services, and the supply of relevant goods and services.
These categories include:
Supply of certain financial services.
Residential properties (excluding the initial supply of newly constructed residential properties that qualify for zero-rating treatment).
Bare land.
Local passenger transport.
Businesses meeting specific requirements outlined in the Legislation, such as being resident in the UAE and having related/associated parties, will have the option to register as a VAT group. VAT grouping will serve to simplify VAT accounting for these businesses. You can get in touch with VAT advisory services Dubai, in case of any query.
VAT-registered businesses will have the opportunity to reduce their output tax liability by the amount of VAT associated with bad debts that have been written off. The legislation sets out the conditions and limitations regarding the use of this relief.
To avoid being taxed twice, registered individuals buying second-hand goods from unregistered sellers for resale can calculate VAT based on the profit margin. The VAT amount relevant to the profit margin will be included. For further details and conditions on applying this mechanism, refer to the Executive Regulations of the Federal Decree-Law No. (8) of 2017 on Value Added Tax.
In cases where a VAT-registered person incurs input tax on business expenses, they can fully recover the input tax if it pertains to a taxable supply made or intended to be made. However, if the expense relates to a non-taxable supply (such as exempt supplies), the registered person may not reclaim the input tax paid.
There are situations where an expense can be linked to both taxable and non-taxable supplies made by the registered person, especially in sectors like banking. In such scenarios, the registered person will need to apportion the input tax between the taxable and non-taxable supplies.
Initially, businesses are expected to use input tax (the ratio of recoverable input tax to total input tax incurred) as the basis for apportionment. However, alternative methods may be used if they are deemed fair and agreed upon with the Federal Tax Authority.
Penalties are imposed for non-compliance with tax laws. Tax evasion also leads to penalties. You can get in touch with VAT advisory services Dubai, in case of any query.
No special schemes are planned for SMEs, but the FTA provides resources on their website to assist them.
Transitional rules address situations where supplies span the VAT introduction. Payments received before VAT but delivered later require VAT. Contracts without VAT clauses are treated as inclusive of VAT, with exceptions.
Generally, insurance (excluding life insurance) is taxable. Life insurance is exempt.
In the UAE, tourists are subjected to pay VAT as per the requirement. However, they can reclaim the VAT incurred on their goods by meeting specific conditions and participating in the Tax Refunds for Tourists Scheme.
Yes, details about the VAT refund for business visitors can be found in the user guide dedicated to this topic.
All Federal Tax Laws, Executive Regulations, and Cabinet Decisions are published under the "Legislation" section on the FTA website.
The UAE is exploring additional tax options in line with global best practices. This plan is under analysis and do not have much chances of its implementations. Currently, personal income taxes are not being considered by the UAE.
Validation for Tourist Refund Scheme claims is available around the clock, and refund desks are open 24/7 at major airports.
A list of cash refund points can be found on planetpayment.ae. Planet processes credit or debit card refunds.
Overseas tourists are eligible for VAT refunds under the Tax Refunds for Tourists Scheme. The law of UAE defines tourists as the natural person who is not considered as crew member. Currently, all GCC countries are considered Non-Implementing States of the GCC VAT Treaty. Therefore, visitors from other GCC states can claim VAT refunds on their UAE shopping. At least 18 years old tourist can ask for refund.
Absolutely not. The validation and refund collection of the Tax Free Tag are exclusively reserved for the individual who owns the passport/GCC ID under which it is registered.
No, it is required that both the goods and their original packaging are accessible for inspection. This inspection is conducted to verify that the items were recently acquired.
The physical Tax Free Tag should be affixed to the invoice upon exiting (during validation).
When undergoing the validation process, tourists will be required to input their card information. The refund option extends to Visa, MasterCard, Amex, and Union Pay, providing flexibility for reimbursement.
Tourists have the option to receive their refund through their credit or debit card, or they can collect the refund in cash from a designated Planet cash refund agent if available. Alternatively, at exit points where cash refunds are not possible, tourists may have the option to claim the refund using e-vouchers. When validating a Tax Free Tag, the tourist will be asked to select their preferred refund method. For a comprehensive list of cash refund locations, please refer to the Planet website.
Tourists can easily monitor the status of their tax refund by utilizing their smartphones to scan the QR code on the Tax Free Tag. The QR code will direct them to a dedicated website where they can access real-time updates on their refund progress.
Tourists can easily monitor the status of their tax refund by utilizing their smartphones to scan the QR code on the Tax Free Tag. The QR code will direct them to a dedicated website where they can access real-time updates on their refund progress.
Ensure to search for shops that showcase the Planet Tax Free and FTA logo, or feel free to inquire directly within the store.
The validation process will commence accepting Tax Free Tags six hours prior to the scheduled departure time of the tourist.
The Tax Free Tag requires a minimum purchase amount of AED 250. It is possible to reach this threshold through multiple purchases within the same store group on the same day.
The reimbursement amounts to 85% of the Value Added Tax (VAT), deducting 4.80 AED for each Tax-Free Tag.
The tourist is required to export the purchased goods and get the Tax Free Tag stamped for validation within a 3-month period from the date of purchase. Failure to do so will result in the ineligibility for a tax-free refund.
Tourists visiting the UAE can bring back purchased goods and get them validated for export within three months from the date of purchase. To obtain validation, the goods should not have been used or partially consumed and must be made available for inspection.
No, but these items are intended for personal use or as gifts. If there are suspicions that these products are not for personal use, there might be an increase in checks during the purchasing process.
Tourists are required to retain the Tax Free Tag along with the invoice until the day of their departure. When leaving, tourists should either show their Tax Free Tag to a Planet staff member or utilize a self-serve kiosk provided by Planet to obtain digital validation for the Tax Free Tag. This should be done before checking in their luggage and proceeding through security. Upon completing the validation process, tourists have the option to receive a refund in the form of either a credit/debit card refund or cash.
After verification, the tourist will submit their passport/GCC ID and Tax Free Tags to a Cash Refund Agent. The Planet personnel will assist the tourist in locating the nearest cash agent.
Products must be present for examination at the validation checkpoint, which occurs before the check-in, luggage drop-off, and security procedures. To qualify under this program, the items must be accompanied by the tourist upon departure from the UAE. If the products are sent through a courier, they will not be considered eligible goods under this scheme.
To claim a tax refund, tourists must ensure that the Tax Free Tag is validated before their departure. Failure to validate the tag will result in the inability to obtain a refund. In case a tourist didn't have enough time to claim the refund at the departure point, they have the option to provide their card details later for the refund process after the goods have been verified and validated.
To process the tax-free refund, it is essential to attach the invoice to the Tax Free Tag and present it at the airport. Failure to do so will result in the tourist not receiving their tax-free refund upon exiting. To keep their Tax Free Tag purchases organized, tourists will be provided with invoice wallets at the stores.
The individual seeking a refund must be the same person whose name and passport number are registered in the Tax Free Tag transaction. It is permissible to return the purchased goods before the Tax Free Tag has been validated at the point of exit (in such cases, the merchant will need to cancel the Tax Free Tag according to Planet's procedures). However, once the tourist has validated the Tax Free Tag at the point of exit from the UAE, returns are no longer permitted.
Customers are permitted to make returns before the Tax Free Tag undergoes validation at the point of departure. To do so, the merchant must follow Planet's prescribed procedures to void the Tax Free Tag. However, once the tourist has validated the Tax Free Tag at the UAE exit, returns will no longer be accepted.
Certainly! You can claim a VAT refund if the tourist who bought the goods is there during the purchase, and it's the tourist's details that are provided for the refund.
Tourists are eligible for a cash refund of up to AED 10,000 for all Tax Free Tags, provided the total value does not exceed this limit. If the total amount surpasses AED 10,000, the remaining tags can only be refunded through a credit or debit card transaction.
Planet usually completes the processing of card refunds within a period of 10 days. Please note that this duration does not account for the processing times of the bank or the credit card company involved.
If it is possible, a cash reimbursement will exclusively be provided within the secure area of the airport.
A fixed currency conversion rate will be employed to convert funds into the cardholder's local currency, except when the currency is AED.
The reimbursement will occur through the appropriate method, such as credit card, debit card, or e-voucher when applicable.
Travelers should follow these steps to monitor their refund: utilize your smartphone to scan the QR code on the Tax Free Tag, which will lead you to a dedicated tracking page with additional information. If you need additional help, feel free to reach out to the Planet Customer Services team.
Certainly! Sure, you can export items like smartphones, as long as they're still in their original packaging when checked at the exit point. However, if a perfume has been opened, it won't qualify for a refund.
You can request a refund specifically for the 4 boxes being sent for export.
The helpline for merchants will operate seven days a week, starting from 10 am and extending until midnight. On holidays with extended store hours, the helpline will be available until 2 am. You're welcome to send emails at any time.
Certainly! Indeed, a restaurant can participate in this program by registering if they offer items that meet the criteria.
At the very least, we require either the original or a copy of your passport or GCC ID details.
No, you'll need the purchase invoice (with the Tax Free Tag attached) to proceed.
Indeed, in order to secure a tax refund, it is essential to affix a Tax Free Tag to every invoice.
To ensure an enhanced experience for both customers and merchants, it is preferred that tourists provide their genuine passport or GCC ID when making a purchase. Nevertheless, a legible copy containing the passport or GCC ID number along with the tourist's particulars would also be acceptable. It is essential to have the original passport or GCC ID during the exit process for validation purposes.
The only items that are not qualified for this benefit are:
- Goods which have been fully or partially used within the UAE.
- Goods that are not accompanied by the foreign visitor when they exit the UAE.
- Motor vehicles, boats, and aircraft.
Tourists have the option to combine a maximum of 8 receipts from purchases made within the same store group on the day of acquisition.
A residential structure refers to a building or its segment purposely created and planned for the dwelling of individuals, primarily encompassing those structures suitable for use as one's primary place of residence. It does not encompass:
- Any location not permanently affixed to the ground and capable of relocation without harm.
- Any building employed as a hotel, motel, bed and breakfast facility, hospital, or similar purposes.
- A serviced apartment that offers supplementary amenities beyond accommodation.
- Any building erected or altered without proper legal authorization.
A commercial structure encompasses any edifice or segment thereof that does not serve as a residential dwelling. This category includes entities such as office spaces, storage facilities, hotels, retail establishments, and more
Real estate supply encompasses various possibilities, such as the sale, lease, or granting of rights in any property.
The initial sale of a newly built residential property within the first three years is subject to a zero tax rate. Any sales that follow, even during this initial three-year period, are considered exempt from taxation.
The VAT rate of 5% is applicable to all supplies of commercial properties, encompassing any structures or components that do not fall under the category of residential buildings.
Owners of residential properties who exclusively engage in VAT-exempt transactions are not required to register for VAT unless they are involved in any taxable business operations. If there are taxable business activities, they should carefully assess their responsibilities.
For non-residential properties, the owner must register for VAT if the total value of supplies made in the past 12 months surpasses AED 375,000, or if it is anticipated that this threshold will be exceeded within the next 30 days.
The proprietor of a residential property cannot reclaim Value Added Tax (VAT) for costs associated with the provision of the residential property that falls under the exemption.
On the other hand, the owner of a commercial property typically has the ability to recover VAT for expenses related to the provision of the commercial property.
The leasing or selling of a residential section within the building will be handled as either zero-rated or exempt, depending on whether it's the initial transaction or a subsequent one.
On the other hand, the leasing or selling of a commercial section of the building will be subject to a 5% VAT.
In cases where the owner of the building incurs tax, it should be divided proportionally when an exempt supply is involved. The portion related to taxable supplies (at 0% and 5% rates) can potentially be reclaimed.
Typically, residential building rentals are not subject to VAT (Value Added Tax).
However, when it comes to commercial building rentals, they are subject to a 5% VAT.
Taxation serves as the primary mechanism through which governments generate funds to cover essential public services. These funds play a crucial role in supporting institutions like public healthcare facilities, educational establishments, national defense, and other critical components of our everyday existence.
Direct taxes are levied directly on individuals or entities by the government. Examples of direct taxes include income tax and corporate tax.
On the other hand, indirect taxes are collected by intermediaries, such as retail stores, on behalf of the government. Ultimately, the end consumer bears the burden of these taxes. Examples of indirect taxes include Value-Added Tax (VAT) and Sales Tax.
In line with international norms, the UAE is currently investigating alternative taxation approaches. Nonetheless, thorough assessments are ongoing, and it seems improbable that these will be implemented in the immediate time frame. It's essential to note that personal income taxes are not under active contemplation by the UAE at present.
According to our assessment, this strategy has the potential to enhance the nation's economic robustness by reducing dependence on oil revenues, enabling the allocation of funds towards essential public services. This development indicates the progression of a more mature economy.
The official FTA website offers a range of resources such as guides, public clarifications, and references, all designed to help individuals gain a clearer comprehension of tax regulations in the UAE.
Additionally, there's a dedicated telephone hotline established for direct communication with our staff.
The Free Trade Agreement (FTA) offers guidance and learning resources to support businesses in managing their tax obligations. It's important to note that the government does not cover the expenses for businesses to acquire new technologies or employ tax experts and accountants. These responsibilities fall on each individual business.
Cabinet Decision No. (40) of 2017 has established administrative consequences for any breaches, and these can be accessed in the "Legislation" segment of the FTA website.
