UAE: compliance with VAT regulations rises in Q1
The UAE Federal Tax Authority (FTA) said, on 21 April, that the number of VAT registrants had increased to 367,157 in in the first quarter of 2022, compared to 358,468 in Q1 of 2021, an increase of 2.42%.
The FTA board reviewed a report on the FTA’s plans to develop and enhance the tax system’s procedures and examined the progress made on developing the draft corporate tax law. Chairman Sheikh Maktoum issued directives to maintain the pace of upgrades made to the FTA’s services, in line with international best practices and digital transformation plans, which were developed to boost the UAE’s competitive edge in terms of services provided.
“The FTA is committed to strengthening its relations with all entities involved in implementing the tax system in the government and private sectors, and to fulfilling its role in driving nationwide economic diversification policies through the administration and collection of federal taxes, in line with best practices,” he said.
“The authority is constantly reviewing the executive regulations it issues for each tax legislation in order to ensure top-level performance and streamlined procedures. The stages ahead will witness sweeping developments and upgrades to tax systems and procedures in order to enhance the quality of the FTA’s services.”
The FTA said it had approved new applications from UAE citizens to recover VAT incurred on building new residences; the value of refunds reached Dh185,038,134 during Q1 2022, compared to Dh118,503,245 in Q1 2021, showing a record growth of 56.15%.
Following the introduction of VAT in the UAE, Sovereign’s team of qualified chartered accountants has been focused on assisting clients to implement and execute reliable procedures to ensure their VAT compliance. The range of VAT-related services that Sovereign can offer includes:
- VAT Consultation
- VAT Registration
- VAT Implementation
- VAT-compliant Bookkeeping
- VAT Returns
- VAT Recovery
Sovereign can provide all the above services on the basis of either a comprehensive VAT package or a specific service unit. We understand that every client’s situation is different and have the flexibility to tailor our services to a particular client’s requirements. Our aim is always to combine the highest level of professional service with the most straightforward approach, such that our clients obtain a complete and transparent understanding of their tax-related obligations within the UAE.