(MENAFN- Emirates News Agency (WAM))
DUBAI, 17th January, 2018 (WAM) -- The Federal Tax Authority, FTA, has made some exceptional amendments to the first tax period for those subject to value-added tax, VAT, to be more flexible with the business sectors included in the tax.
This decision is a response to the calls of many authorities and institutions subject to VAT, which came into force on 1st January, 2018.
Khalid Ali Al Bustani, Director-General of the FTA, stated that this action is part of the authority's desire to promote its partnership with the business sector, assist companies to achieve full tax compliance, and provide them with the appropriate assistance, under the Decree of Federal Law No. 8 for 2017 on VAT and its executive regulations.
He added that the exceptional amendments, to be applied to several businesses, include extending the accounting tax period by one to three months for some businesses and amending the quarterly tax period, scheduled to end during the first tax period at the end of January or February, to end on the second tax period. The tax period for some businesses will, therefore, be four months, and five months for other businesses while businesses with a three-month tax period ending in March will not be affected by the amendments, he further added.
Al Bustani stressed that the authority is communicating with all business sectors to learn about their opinions and discuss ways of overcoming their obstacles, to guarantee the smooth adoption of the new Emirati tax system, achieve their desired goals, and provide the business sector with appropriate assistance.
He also noted that companies can view the amendments to the first tax period by logging into their accounts on the e-services portal on the FTA's website.
According to the Resolution of the Cabinet of Ministers No. 52 for 2017 on the executive regulations of the Decree of Federal Law No.8 for 2017 regarding VAT, the basic tax period is three months from the date set by the FTA, and the authority has the right to set a shorter or longer period for individuals or a group of individuals if it decides that the non-essential tax period is necessary.
As per the regulations, the tax declaration must be submitted to the authority no later than on the 28th day after the end of the relevant tax period.
WAM/Nour Salman/Hassan Bashir
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