The Federal Tax Authority’s (FTA) Board of Directors has formally approved implementation of Tourists Refund scheme at its fifth meeting, held today (Wednesday, April 26, 2018) at the Dubai Ruler’s Court.
The meeting was headed by Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance.
The scheme is set to include general procedures to connect outlets and points of sale across the UAE with the refund system.
The Board also adopted the proposed design and of a marker for tobacco products, allowing them to be tracked electronically to ensure that the Excise Tax on these products is paid.
Successfully implementing the Tax System
During the meeting, the FTA Board of Directors reviewed a comprehensive report covering the achievements made by the Federal Tax Authority, as well as the successful implementation of the UAE tax system.
The reports revealed a remarkable increase in the number of businesses registered for VAT before the end of penalty waiver period issued by the Authority to exempt businesses from late registration penalties, where 281,000 of them are now registered for Value Added Tax (VAT), while 637 are designated for Excise Tax.
The reports indicate that this high level of commitment is due to the guidance provided by the FTA to ensure compliance, and the possibility to pay tax dues online.
H.H. Sheikh Hamdan bin Rashid Al Maktoum noted that “Despite being only a few months old, the UAE tax system has registered higher compliance rates than those of many countries with established decades-old tax programmes.”
“Our priority is to help and encourage businesses to comply with tax legislation and procedures, providing state-of-the-art digital systems that reflect our young country’s progress and prestige in all sectors,” Hamdan reiterated.
FTA’s campaigns and workshops
The Council reviewed another report that examines the outcomes of the FTA’s tax awareness campaign, which succeeded in educating the public about their rights and obligations, protecting consumers from profiteering and price manipulations.
The Federal Tax Authority has been conducting a nation-wide awareness campaign over the past two weeks, in collaboration with Departments of Economic Development across the country.
The campaign introduced businesses to the online registration; tax returns submission and tax payment procedures. These services are available round the clock on the FTA website, which is continuously enhanced to offer more payment processing channels to further facilitate online fee for all businesses.