Companies should register with Taxes Authority

ABU DHABI — Registration of UAE businesses for the upcoming taxes will begin next month, announced the Federal Tax Authority (FTA).

Khalid Ali Al Bustani, directorgeneral of the Federal Tax Authority, said on Tuesday that businesses would be able to register online for VAT and Excise Tax by mid-September.

“The UAE has reached a very advanced stage regarding the legislative aspects of the tax system that is among the best in the world,” said Al Bustani.

He noted that the authority expects to register an estimated 350,000 companies subject to VAT by the end of the year, with 250 expected to register for excise tax. The official also explained that the registration process will begin first with blue-chip companies, as well as companies that produce and import excise goods, where further details will be provided in a later stage.

“The registration process will be conducted through e-services on the FTA’s website, which will be launched in the second half of this month (August), which will offer all the relevant information on the UAE taxes and will provide services 24x7,” said Al Bustani. “Businesses can register via our website to ensure their readiness at the time of issuance of the VAT and Excise Tax and their regulations. And after this, details about the tax period, submissions and tax payable will be announced.” Companies that fail to comply with the registration process would be fined, according to the FTA. The FTA said that along with the Ministry of Finance, it conducted the first phase of the awareness sessions on the tax system for various sectors and relevant stakeholders from March to May 2017. Twenty four awareness workshops were conducted and more than 150,000 companies from across the UAE participated.

“We have recently launched the second phase of the tax system’s awareness plan, which focuses on conducting 21 specialised workshops on the VAT and excise tax treatment of the different business sectors,” said Al Bustani. “We will work to ensure business readiness for the VAT and Excise Tax systems, which are focused on economic diversification by diversifying government revenue sources.”