Yes, experienced tax consultants can provide comprehensive support during FTA audits, including preparing required documentation, responding to queries, and representing the business. They also assist with voluntary disclosures to correct past errors or omissions in returns, helping businesses mitigate potential penalties.
Can tax consultants assist with FTA audits and voluntary disclosures?
What is the difference in tax consultancy for mainland and free zone companies in Abu Dhabi?
While both mainland and free zone companies in Abu Dhabi are subject to the same tax law, specific rules apply to transactions within and from free zones. Designated Zones generally treat supplies of goods as outside the scope of this tax, or zero-rated. Tax consultants possess expertise in navigating these distinctions, ensuring appropriate tax treatment for both types of entities. This includes understanding when a supply is considered to be within the UAE and the various related implications. We also offer training for internal teams to ensure a better understanding of these principles.
Non-compliance with tax regulations in Abu Dhabi can result in administrative penalties imposed by the FTA. These penalties can range from fines for late registration and late filing to higher penalties for errors in tax returns or failure to maintain proper records, as outlined in Cabinet Decision No. 40 of 2017. Our experienced tax consultants can help navigate procedures and minimize these risks.
What happens if a business fails to comply with tax regulations in Abu Dhabi?
The frequency of filing consumption tax returns in Abu Dhabi is determined by the FTA upon registration. Most businesses are assigned a quarterly tax period, but some may have monthly periods depending on their turnover. Returns, often using form 201, must be filed within 28 days from the end of the tax period.
How often do businesses need to file consumption tax returns in Abu Dhabi?
Hiring an expert tax consultant ensures accurate registration, timely filing of returns, proper input tax recovery, and compliance with the evolving Federal Tax Authority (FTA) regulations. This minimizes penalty risks, optimizes cash flow, and provides strategic tax advice tailored to business operations in Abu Dhabi. Our tax team offers expert consultancy for this purpose
What are the key benefits of hiring a tax consultant in Abu Dhabi?
No, not all businesses. Registration is mandatory if their taxable supplies and imports exceed the statutory registration level of AED 375,000 per annum. Voluntary registration is available for businesses with taxable supplies and imports exceeding AED 187,500.
Do all businesses in Abu Dhabi need to register for this tax?
Value Added Tax (VAT) is a general consumption tax levied on goods and services at each stage of the supply chain. In Abu Dhabi, as part of the UAE, this tax is applicable at a standard rate of 5% on most goods and services. Certain supplies are exempt or zero-rated, as stipulated by Federal Decree-Law No. 8 of 2017. It operates as an indirect tax collected by the UAE government
What is the Value Added Tax and how does it apply in Abu Dhabi?