By Bernd Debusmann Jr
Over 300,000 individuals and groups have registered for VAT since January 1, 2018
More than 300,000 individuals and tax groups have registered for value-added taxes in the two years since the system was put in place, according to the UAE’s Federal Tax Authority (FTA).
In a statement marking two years since VAT came into force on January 1, 2018, the FTA also said a total of 3.2 million electric tax refund applications for tourists had been received by the end of 2019, compared to 1.52 million applications by the end of June – an increase of 1.68 million applications with a growth of 110.53 percent in the second half of 2019.
The daily average number of tax refund applications for tourists, the statement added, rose 2.64 fold, from 372,000 applications in the first month of application to 983,000 a day in December 2019.
“The FTA started implementing the VAT refund mechanism for foreign visiting businesses as of last April,” Khaled Al-Bustani, the director general of the FTA, added. “The mechanism has witnessed remarkable activity and steady growth in its operations.”
“The number of VAT refund requests dealt with through this mechanism reached 105, with a total monetary value exceeding AED 28.7 million, enhancing the attractive environment for investments to support economic activities,” Al-Bustani said.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.