Led by H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, the Federal Tax Authority’s Board of Directors held its sixth meeting at the Ministry of Finance premises.
During the meeting, the Board approved the proposed budget for 2019, in addition to several executive decisions on the internal regulations and operations.
Furthermore, the Board also discussed a detailed report on the FTA’s achievements over the past period, including the latest developments with regards to their activities, the registration procedures for Value Added Tax (VAT), and Excise Tax, import declarations, Tax Returns on Excise Tax and VAT, and audit processes. The report has shown a high rate of tax compliance in the UAE.
Sheikh Hamdan praised the FTA for its progress, confirming that the authority has built a strong partnership with the private sector by providing facilities to ensure self-compliance with tax regulations.
The Board also assessed the technological infrastructure for the Tax Refund for Tourists Scheme at Abu Dhabi, Dubai, and Sharjah airports. The report included an overview of preparations to set up tax reimbursement offices in the three airports, that will electronically link the system with the FTA network and participating retail outlets.
Additionally, the FTA Board of Directors discussed on the issues such as the Digital Tax Stamp Scheme for Tobacco, to be implemented on 1st January 2019, affecting imported and locally produced cigarettes, before being expanded to include all locally distributed tobacco products.
“The few remaining months of 2018 and the coming year will witness great transformations with new mechanisms being launched, such as phase one of the Tax Refund for Tourists Scheme, which will be launched next month and become fully operational before the end of the year with an integrated digital infrastructure connecting stores, retail outlets, airports, land and seaports. This, in turn, promotes the UAE’s status as a leading destination on the international tourism map,” Sheikh Hamdan explained.
The Federal Tax Authority claimed that the approved budget for 2019 will further strengthen their partnership with private business sectors. The new tourist refund regime will further boost the retail sector, promoting UAE once again as a shopping destination for international travellers. With this in mind, is your business setup compliant with the VAT processes and is your structure designed for tax optimization?
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