The UAE’s Federal Tax Authority (FTA) is urging VAT-registered retailers, outlets and shops to register for a tax refund scheme for tourists which is slated to come into effect in the fourth quarter of 2018, the FTA announced on Saturday.
In a statement, the FTA said that it has identified for conditions for registering for the scheme: the retailer must be registered for VAT and have a tax registration number, the supplier’s sales of goods must not be excluded from the refund scheme, the retailer must submit a request to participate, and, finally, the retailer must meet the financial credit requirements specified by the FTA.
In a statement, the FTA warned that that a retailer’s membership in the tourist refund scheme could be revoked it they failed to meet the obligations stipulated by the UAE’s tax laws or in the contract between the system operator and the retailer.
The FTA’s director-general, Khalid Ali Al Bustani, noted that the FTA and scheme operator Planet have organised a number of workshops and seminars to introduce VAT-registered retailers to the refund scheme, with an extended meeting scheduled for September 25 in Ajman.
Similar events are planned in Abu Dhabi and Dubai.
“The authority has developed a comprehensive plan to introduce the new scheme and its registration requirements and conditions, including induction programmes offered through the FTA official website, as well as social media, print, and audio-visual outlets,” Al Bustani said.
Additionally, Al Bustani noted that the system operator – Planet – “will coordinate between retailers registered in the tax system and wishing to register for the scheme, connecting them with ports of entry and exist all around the UAE.”
“This, in turn, allows tourists who are eligible for a tax refund as per the terms and conditions of the cabinet decision, to request a refund for taxes incurred on their purchases,” he added. “The scheme creates designated places for tourists to apply for a tax refund and easily recover the eligible refundable amounts, which will be accurately calculated through the advanced digital system.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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