Watch out for 4 points to ensure you are not overcharged for VAT
Mohammed Ahmed bin Abdul Aziz Al Shehhi chairing a Ministry of Economy and the Federal Tax Authority meeting.
The UAE's Ministry of Economy and the Federal Tax Authority (FTA) have asked consumers to check four points when an invoice is issued on the purchase of goods and service to ensure that their rights are protected and to prevent profiteering as well.
The FTA emphasised that consumers should check Tax Invoice, Tax Registration Number, price includes VAT, and the amount of tax charged when they purchase goods or services in the UAE following the implementation of five per cent VAT.
The two government bodies also adopted an integrated programme that would allow FTA and the ministry to cooperate with other authorities to detect tax violations and take measures against violators.
High turnout for registration
Moreover, the FTA urged business sectors to complete all their registration requirements for VAT purposes, commending the commitment and high turnout in the registration process.
However, it didn't disclose how many have registered for VAT so far. It had earlier expected 350,000 companies to get tax registration. Those businesses with annual turnover of Dh375,000 were required to register with FTA to obtain Tax Registration Number.
The FTA confirmed that the registration process is continue and other businesses that did not register to date should register immediately to avoid fines and legal proceedings.
It said businesses are required to validate their entitlement to request for an Exception from VAT registration, which means that all their supplies must be zero rated, if not, the application will be sent back to registrant for amendments, which might delay the process of receiving a TRN.
Furthermore, an agreement between the FTA and Economic Departments was signed during the meeting to monitor markets and allow inspectors in these departments to verify the authenticity of the Tax Registration Numbers (TRN) printed on invoices, and coordinate regarding violations to take the necessary actions against violators.
"The ministry to ensure all business sectors can play their part in contributing to national economic growth. This meeting is part of the ministry's efforts to safeguard the rights of consumers and protect them from profiteering, as well as preventing businesses from using the introduction of VAT to make unjustified price increases. Therefore, and in partnership with the Federal Tax Authority and other stakeholders, the ministry supports efforts made by all parties to protect consumers' rights," said Mohammed Ahmed bin Abdul Aziz Al Shehhi, Undersecretary, Ministry of Economy.
Khalid Al Bustani, Director-General of the FTA, said efforts made by the Ministry of Economy towards protecting consumers are a crucial step in establishing systematic and accurate supervision of the market, as well as ensuring the implementation of the tax system according to the highest global standards, helping the UAE achieve sustainable development and boosting the performance of key sectors for the good of the entire society.
The FTA has linked its systems with Customs systems at all entry ports in order to collect taxes from importers, noting that the country is witnessing a high activity in imports movement and goods entry