Brief Information you Should Know About the Federal Tax Authority in UAE

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Tally Solutions | Updated on: November 3, 2022

What is FTA in UAE?

FTA stands for The Federal Tax Authority in UAE. This is the government entity responsible for managing, collecting, and enforcing federal taxes and related fines, as well as distributing tax-generated revenues and applying the tax-related procedures in the UAE. The Federal Tax Authority (FTA) was established under Federal Law by Decree No. 13 of 2016.

How is Corporate Tax in UAE Calculated?

Businesses and Incomes that Will be Exempted from UAE Corporate Tax

What is VAT return in UAE?

At the end of each tax period, VAT-registered businesses in UAE must submit a VAT return to Federal Tax Authority.

The VAT return summarizes the earned value of the supplies and purchases of the VAT-registered business during the tax period and shows the business’s VAT liability.

The liability of VAT is the difference between the output tax payable (VAT charged on supplies of goods and services) for a given tax period and the input tax (VAT incurred on purchases) recoverable for the same tax period. If the output tax exceeds the input tax amount, the difference must be paid to Federal Tax Authority in UAE. In case input tax exceeds the output tax, the VAT-registered business will have the excess input tax; and will be entitled to set this off against subsequent payment due to Federal Tax Authority.

How do I pay my FTA tax online?

Once your business is registered at the Federal Tax Authority online portal, you can pay your due tax online using multiple options available in the portal. The businesses must pay the entire amount of tax to the Federal Tax Authority in UAE before the due date to avoid penalties. You can pay via:

  • e-Dirham or credit card
  • Local bank transfer
  • International bank transfer

How do I contact FTA?

The Federal Tax Authority (FTA) welcomes all queries and requests through various communication channels.  You can reach FTA using any of the below channels: Call Center on dedicated telephone number: 600599994, where you can find an agent who answers your query or request.

  • Emails to info@tax.gov.ae are the second option. You will usually receive a reply within 2 business days at most.
  • You can also use the contact form on the FTA portal by clicking https://tax.gov.ae/en/contact.us.aspx and get a reply within 2 business days at most.
  • You can visit the support during the working days/hours at the Emirates Property Investment Company Building, P.O. Box 2440, Abu Dhabi, UAE.

How much is VAT rate in UAE?

A VAT rate of 5% is applicable to products and services in UAE. The VAT-registered businesses in UAE are responsible for paying a VAT of 5%. On most of the supplies in UAE, a VAT rate of 5% will be charged and certain specified products or services and certain types of supplies will be classified as exempt and zero-rated.

How can TallyPrime help?

Whether you are a legal person or a natural person, TallyPrime can easily manage your VAT requirements for UAE VAT. Right from generating VAT-compliant invoices to return filing, TallyPrime contains all that is required to be VAT compliant while you focus on your business growth.

The built-in capability of error detection and correction ensures that you file an accurate VAT return always. Depending on the location of your business, you can record transactions with relevant taxes for designated zones.

With the experience of 30+ years in the market, which has gained the trust of more than 2 million businesses worldwide, TallyPrime helps your business with its integrated features, including:

  • Easy and quick to configure the tax details via VAT Rate Set-up
  • Issue VAT Compliant invoices
  • Ease of managing reverse charge transactions with complete visibility of liability booked and liability yet to be booked
  • Account and manage VAT on advance receipts with the help of an advance receipt report
  • Generate an Audit File as prescribed by Federal Tax Authority (FTA) at a click of a button
  • Generate Accurate VAT returns

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