- The Federal Tax Authority (FTA) of the UAE has launched a new VAT refund system that allows tourists to reclaim VAT on all their purchases made during their stay in the UAE, applicable to both traditional stores and registered e-commerce platforms.
- Effective from January 1, 2025, the FTA has introduced a Decision outlining the “Mechanism for Correction of Error or Omission in the VAT Return.” Taxpayers must submit a Voluntary Disclosure to rectify errors in VAT returns when there is no difference in due tax, including issues like incorrect emirate-wise reporting or misclassification of supplies.
- The FTA has released an updated list of charities eligible to recover input VAT, which now includes “Sheikh Rashid Bin Saied Islamic Institute” in Dubai and “Hamda Taryam Charitable Foundation” and “Friends of Cancer Patients” in Sharjah, effective from December 16, 2024, subject to compliance with specific conditions for VAT recovery.
Source Piyush Baid
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