All about the Federal Tax Authority (FTA) in the UAE
In any country, taxes are a medium to generate the revenue needed to support services required by citizens and residents. While most of the UAE’s revenue comes from its oil reserves, taxes are levied to reduce the country’s dependence on oil and diversify the country’s resources. They are also important for the government to continue providing its citizens and expats with exceptional public services. The Federal Tax Authority, or FTA, is the regulatory body for collecting and implementing taxes in the UAE.
Keep reading to know more about the e-services of the Federal Tax Authority UAE.
ABOUT THE FEDERAL TAX AUTHORITY
The Federal Tax Authority was established by virtue of Federal Law Decree No. 13 of 2016. It was issued by the President of the UAE, H.H Sheikh Khalifa bin Zayed Al Nahyan. The Federal Tax Authority, or FTA, has offices in Dubai and Abu Dhabi.
Five main points serve as the mission of the FTA:
- Promoting economic growth and sustainability in the UAE
- Increasing the UAE’s revenues apart from oil
- Reducing dependence on oil as the major source of revenue
- Achieving economic diversification with best financial practices
- Helping the business community and consumers understand their tax responsibilities
Additionally, the Federal Tax Authority imposes taxes on products and behaviours that may be detrimental to society or human health. It also imposes fines on consumers and businesses that fail to pay or report their taxes on time.
TAXES IMPOSED BY THE FEDERAL TAX AUTHORITY
Basically, two types of taxes are imposed by the FTA:
- Value Added Tax
- Excise Tax
Value Added Tax, or VAT, is an indirect and transaction-based tax that is applicable at every stage of the supply chain. The cost of VAT is usually borne by the final consumer, whereas registered businesses collect the tax on behalf of the FTA. This tax goes a long way towards providing high-quality services to all UAE residents.
The second type of tax, excise tax, applies to goods that are harmful to human health, such as tobacco products and carbonated drinks. All businesses that are involved in the import, production or release of such goods have to register with the Federal Tax Authority Dubai or Abu Dhabi office.
The imposition of excise tax aims to reduce the consumption of these goods, while also increasing government revenues to spend on public services.
E-SERVICES OF THE FEDERAL TAX AUTHORITY
The Federal Tax Authority has a list of comprehensive and helpful e-services that help businesses register and file their tax returns much more efficiently.
Some of the key e-services include:
- VAT registration
- VAT amendment
- VAT de-registration
- VAT & Excise tax import declaration
- VAT & Excise tax refunds
- VAT & Excise tax returns
- Payment of fines and issuance fees
You can register your account on the e-services portal on the Federal Tax Authority website, to avail their various services and access information regarding the tax system of the UAE.
You can also read our detailed guides that discuss the process to register for VAT in the UAE and how to amend the VAT registration.
FEDERAL TAX AUTHORITY CONTACT DETAILS
If you have any questions or queries about the taxation system in the UAE, you can reach out to the FTA through their website. You can also refer to their FAQ section to find answers to common questions. You can also visit the Federal Tax Authority Abu Dhabi or Dubai office, the details of which are stated below:
DUBAI OFFICE
- Location: Central Park – Business Tower – Dubai
- Contact: +971-60-059-9994
- Operating hours: Sunday to Thursday: 08:00 am – 04:00 pm
ABU DHABI OFFICE
- Location: Emirates Property Investment Company Building – Abu Dhabi
- Contact: +971-60-059-9994
- Operating hours: Sunday to Thursday: 08:00 am – 02:00 pm
That ends our guide to the Federal Tax Authority in the UAE and its e-services. Check out our posts on taxes in the UAE to learn more about the UAE’s tax system. You can also check out our guide to VAT in the UAE, as well as the excise tax in the UAE. If you need help with filing your VAT returns, here are the top tax and VAT consultants in the UAE.
