UAE tax authority urges consumers to check VAT invoices

The UAE’s Federal Tax Authority (FTA) has called on consumers to review invoices amid concerns unregistered businesses are charging value added tax (VAT).

The country implemented a 5 per cent VAT rate on January 1 alongside neighbouring Saudi Arabia.

The tax applies to companies if they sell goods and services subject to the tax exceeding Dhs375,000 ($102,00).

Those that sell goods or services worth less can voluntarily register ahead of the tax’s broader implementation for all companies.

The FTA said consumers should review receipts to ensure they are compliant with the law.

Read: VAT will help wean UAE off oil, says official

For companies this means including their tax registration number, prices including VAT, the total before VAT and the amount of tax charged on any tax invoice.

Businesses face a fine of Dhs15,000 ($4,084) if they fail to display prices inclusive of VAT.

The penalty for those who fail to pay tax is no less than Dhs500 ($136) and no more than triple the value of the tax on the transaction in question.

A full list of items subject to VAT can be found here.

Read: Revealed: Goods and services subject to VAT in the UAE