Tax Compliance Services
Staying Penalty-Free & Mastering Tax Compliance in the UAE
As we approach the UAE's fifth anniversary of VAT implementation, a poignant reminder emerges—the critical significance of tax compliance cannot be overstated. Beyond its financial implications, the very continuity of your enterprise hangs in the balance. Imagine a small business diligently pursuing its goals yet unwittingly accumulating substantial administrative penalties due to delayed or omitted VAT return submissions. This unsettling reality underscores the urgency for proactive measures to empower businesses, ensuring they remain in command of their financial destiny while averting potential penalties.
Small businesses can face significant administrative penalties for late VAT filings and need to be made aware due to outsourced communication details on their eServices portal. This can result in the owner needing to be made aware of emails and alerts from the Federal Tax Authority (FTA). Small businesses should follow the steps mentioned below to monitor their tax compliance.
Fortius offers professional tax compliance services to maximize your company's financial potential. In this blog, let us discuss how to grasp the reins of tax compliance, fortify your business against potential pitfalls, and emerge confidently on the path to success in the UAE.
Validate Your Credentials - Confirm Email & Phone for E-services Portal
Step 1
Registered taxpayers receive timely updates from the FTA regarding the due dates for their VAT returns. Upon submission of a VAT return or completion of a tax payment, an acknowledgment is promptly issued through both email and SMS notifications. Correspondingly, administrative sanctions are conveyed through email or SMS communication.
However, all these notifications are sent to FTA's registered email address/phone number on the e-services portal. Small businesses must ensure that such emails and phone numbers are available. It will ensure that FTA communications reach them directly.
Updating Your Email & Phone Details & Regularly Monitoring the E-services Platform
Step 2
If business owners cannot access email or phone, they should update the communication details on the eServices portal. A taxpayer can use FTA to modify the email address and/or phone number she provided during VAT registration. The procedure is simple and fast. In rare cases where a business owner is unable to access the eServices portal to update data, they can request that FTA establish new login credentials to access the platform.
Step 3
Even if tax compliance has been outsourced, business owners should monitor the eServices portal on a regular basis to stay up to date on compliance status. Cardholders should pay special attention to the portal's 'My Payments' section. The 'My Payments' area offers information on VAT declarations, tax payments, and FTA fines.
Included in this part is a table called 'VAT Transaction History.' The 'VAT Transaction History' section contains accurate data, such as the date and time a certain tax return was filed, when a tax payment was made, and when a penalty was imposed. The information is available in Excel format and should be checked to identify if any compliance failures have occurred.
All About Reviewing the VAT Returns Submitted
Step 4
Business owners should focus on their core business and outsource non-essential tasks. However, it is prudent to thoroughly assess the figures provided in the VAT reports. Errors on VAT returns can now be corrected on or before the VAT return due date without incurring additional penalties. If the FTA detects problems in the VAT declaration, severe penalties can be applied for improper declarations.
Endnote
Disregarding tax responsibilities poses financial risks and jeopardizes the seamless continuity of your business operations. By proactively engaging in prudent tax management and diligent compliance, you not only sidestep penalties but also fortify the foundation of your success in the UAE. Embrace your role in shaping a prosperous future and safeguarding your endeavors through a steadfast commitment to tax compliance. Contact Fortius consulting services to navigate complex tax compliance services, which will eventually allow you to focus better on business growth.
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