The number of persons subject to VAT increased to 367,157 during the January-March quarter compared to 358,468 in the same quarter last year
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Governor of Dubai, Deputy Prime Minister, Minister of Finance and Chairman of the FTA Board, issued guidelines to maintain the pace of upgrades to the services of the FTA, in accordance with the best international standards. digital transformation practices and plans. — Dubai Media Office
Businesses in the UAE have embraced the new tax structure and strengthened regulatory compliance by posting a 2.42% growth in Value Added Tax (VAT) registration in the first quarter of 2022, according to data. latest data.
The Federal Tax Authority (AFC) said on Wednesday that the number of VAT registrants rose to 367,157 in the January-March quarter, from 358,468 in the same quarter last year.
The FTA Board of Directors, which met under the chairmanship of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Governor of Dubai, Deputy Prime Minister, Minister of Finance and Chairman of the Board of the FTA, adopted the authority’s financial statements for 2021.
The meeting, held at the authority’s headquarters in Dubai on Wednesday, considered a report on the FTA’s plans to develop and improve tax system procedures and bring them in line with international best practice. He also discussed ways to upgrade the services offered to customers through fast, accurate and easy-to-use digital platforms. The AFC board also reviewed the status of the preparation of the corporate tax bill.
FTA Services Upgrade
Sheikh Maktoum has issued guidelines to maintain the pace of upgrades to FTA services, in line with international best practices and digital transformation plans, which have been developed to enhance the UAE’s competitive advantage in terms of services provided . It will support the country’s vision of becoming the highest ranked government in the world in terms of trust and performance indicators.
“The guidelines aim to focus on the client and build skills to become a global leader in government services, drawing inspiration from the UAE’s ’50 Principles’ and the terms of the New Government Action Methodology,” according to the press release from the Dubai Media Office.
The reports, presented at the meeting, demonstrate the efforts of the FTA to maintain high performance scores in all activities. Sheikh Maktoum noted the authority’s plans to elevate its services to ensure the satisfaction of all customers from all segments of society.
“The Federal Tax Authority is committed to strengthening its relations with all entities involved in the implementation of the tax system in the public and private sectors, and to fulfilling its role in the conduct of economic diversification policies at the nationwide by administering and collecting federal taxes in accordance with best practices,” he said.
“The authority is constantly revising the implementing regulations it issues for each tax legislation to ensure high-level performance and simplified procedures. The next steps will see considerable developments and upgrades to tax systems and procedures to improve the quality of FTA services,” said Sheikh Maktoum.
Atik Munshi, Managing Partner of FinExpertiza UAE, said the UAE is among one of the lowest tax jurisdictions in the world.
“Only considering this aspect, businesses are willing to go the extra mile and are happy to comply. FTA has been very proactive and business-friendly in providing several clarifications to ensure easy compliance,” he said. he declares.
“Greater financial discipline has evolved over the years in businesses in the UAE, which also requires the entity to be compliant with regulations. With the improving economy, it is expected that FTA is seeing more recordings,” he added.
Registered for excise tax
The FTA board was told that the number of excise tax registrants increased by 3.02% to 1,398 in the first quarter from 1,357 in the same quarter last year, while the number of tax officers increased to 446 from 433, reflecting a three percent increase.
The report revealed that the authority has approved new requests from UAE citizens to reclaim the VAT they incurred while building their new residences; the value of reimbursements reached 185,038,134 Dh during the first quarter of 2022 compared to 118,503,245 Dh in the same quarter of 2021, showing a record growth of 56.15%.
The significant increase reflects the FTA’s commitment to streamlining online procedures for UAE citizens seeking to reclaim the VAT they incurred while building their new residences, in line with the leaders’ vision to develop a modern housing system for citizens and to ensure their well-being, given that they are the main objective and beneficiaries of the initiatives and projects implemented by all state institutions.
In addition, the report noted the results of the implementation of two phases of the “tobacco and tobacco product branding program”, which aims to end the sale or possession of all types of cigarettes, of waterpipe tobacco (Mu’assel) and electrically heated cigarettes that do not carry digital tax stamps in local markets.