The Federal Tax Authority, FTA, recently organised an awareness and training workshop for inspectors at the Sharjah Economic Development Department, SEDD, as part of its intensive programme to raise awareness among stake holders.
Titled "Objectives and Procedures for Implementing Value Added Tax", the session adds to the authority’s series of activities to raise awareness and enhance inspection related to implementing tax system, and targeting inspection teams in economic development departments and competent entities across all emirates.
The FTA representatives explained the services provided by the authority to help Taxable Persons comply with VAT regulations, which include rigorous inspection campaigns to protect consumer rights.
FTA's representatives answered participants’ enquiries, mainly regarding the mechanisms of implementing VAT; tax invoices criteria; taxable, exempt and zero-rated supplies of goods and services; Tax Registration Number, TRN, verification; calculating the tax due on goods and services; VAT refund system for amounts paid by tourists during their visit to the UAE; and legal standards for free zones and designated zones.
The authority’s representatives explained that a certain criteria should be met when issuing a tax invoice, including that registrants should issue an original tax invoice when making a taxable supply, "Tax Invoice" should be displayed in addition to the name and address of the registered supplier; name and address of the recipient if registered with the FTA; a sequential Tax Invoice number or a unique number which enables identification of the Tax Invoice and the order of the Tax Invoice in any sequence of invoices; issuance date and supply date if different from the date of issuing the tax invoice.
The representatives noted that tax invoice should also include a description of the supplies or provided services; price, quantity and size of each unit; payable amount or the value of any discount; total payable amount; payable tax amount in Dirhams and the applied exchange rate in case the currency is exchanged into another currency other than UAE Dirham.
The FTA representatives explained that simplified invoices carrying basic information can be accepted if the purchase value is less than AED10,000 or if the person is not subject to tax and does not require a tax invoice.
The workshop also acquainted participants with VAT implementation on businesses and how the VAT system deals with certain sectors, and highlighted frequently asked questions and common errors that might occur in the field of taxation.