The first 100 days of VAT have seen 98.8 per cent of all businesses and groups registered for Value Added Tax (VAT) comply with submitting their Tax Returns on time, where the rate increased after follow-ups from the authority asserted HE Khalid Ali Al Bustani, Director General of the Federal Tax Authority (FTA).
Al Bustani stated that this high level of commitment is due to the guidance provided by the FTA, as well as the clarity and simplicity of the procedures, which allow taxable persons to submit tax returns and pay their dues online, any time, using a number of flexible payment solutions.
This system now has 275,000 registrants, allowing taxable persons or their representatives to complete all procedures without having to be physically present at the authority—from opening up an account on the portal, to registering for VAT, to paying due taxes.
Al Bustani added that the UAE is one of the first countries in the world that has implemented a full e-service system, and the compliance rate is one of the highest globally. He pointed out that the results of the implementation reveal a steady increase in tax compliance rates, confirming the success of the model adopted by the Authority to encourage self-compliance and voluntary registration for tax purposes.
span lang="EN-GB">“The Federal Tax Authority’s call centre has addressed around 100,000 telephone enquiries in the period from 1 January to 8 April 2018, while our experts answered around 70,000 email queries in the same period. This brings the total number of queries and concerns addressed to more than 170,000, which clearly reflects the Authority’s commitment to interacting with its partners from various business sectors, as well as society in general,” said Al Bustani, noting that the number of stakeholders within the UAE tax system is consistently and rapidly expanding, with the FTA having accredited 85 clearance companies and 21 tax agents, with a further 56 agents currently under process.