Refund of value-added tax to thousands of citizens for building their...

The Director General of the Federal Tax Authority, Khaled Al-Bustani, confirmed that thousands of citizens benefited from the tax refund mechanism for building their new homes, noting that the past period witnessed the provision of new facilities to the refund mechanism, including increasing the period specified for submitting a refund request to the authority to 12 months from the date of completion of the housing. Newly built instead of 6 months old as before.

In an interview with the Emirates News Agency, WAM, Al-Bustani reviewed the expansion of the services provided by the authority on two parallel tracks through the development of basic services, in conjunction with the development of new services, as well as updating the applied policies and procedures, in line with local and external changes with the aim of supporting business sectors as Ongoing, encouraging self-compliance with the tax system.

He said that among the steps taken by the authority to develop its services during the last period, the development of a mechanism for returning value-added tax to citizens for building their newly constructed homes, developing the electronic system for tax refunds for tourists, and making the new version of the e-dirham available within its official channels for paying tax dues, as well as developing Continuing the services of the Authority in general.

As for the services and decisions that were issued during the last period, and aimed at supporting and assisting registrants in the tax system to fulfill their tax obligations, in a way that enhances the country’s competitiveness in the field of doing business, the most prominent of which was the authority’s provision of services for issuing tax domicile certificates and commercial activities electronically, and the amendments that were made pursuant to a decision of the Council of Ministers. Ministers No. 49 of 2021 amending some provisions of Cabinet Resolution No. 40 of 2017 regarding administrative fines imposed for violating tax laws in the country, which came into effect as of June 28, 2021.

He added that a large number of those registered with the authority benefited from this decision, which included many facilities, including providing a mechanism for re-defining administrative fines that were imposed in accordance with Cabinet Resolution No. 40 of 2017, before the date of June 28, 2021, to equal 30% of the total outstanding fines due. Until June 28, 2021 based on the fulfillment of conditions specified in the resolution.

Also, in implementation of Federal Decree-Law No. 28 of 2021 amending some provisions of Federal Law No. 7 of 2017 regarding tax procedures that entered into force as of November 1, 2021, new procedures have been implemented to provide more facilities to those registered in the tax system regarding requests for reconsideration, and to submit Objections to the Authority’s decisions, the implementation of the decisions of the Dispute Resolution Committee, and the appeal procedures.

On the most prominent development navigator achieved by the authority, Al-Bustani indicated that the Federal Tax Authority provides all its services with easy electronic procedures, including the electronic platform to refund value-added tax to citizens for building their newly constructed homes through the authority’s website, and is keen to implement simple electronic procedures for citizens to recover the tax Paid by them for building their new homes in implementation of the vision of the wise leadership to develop a modern housing system for citizens and provide them with the best standards of life and a comfortable life for them within the framework of the great care given by the state to them as they are the focus of development plans and the main objective of the initiatives and projects implemented by state institutions.

He affirmed the authority’s follow-up to all the proposals received, and if they are related to developmental measures that are applicable within the authority of the authority, they will be responded to.

He stated that in this context, the mechanism for recovering value-added tax on new housing construction has been continuously developed by providing more facilities, after consulting with many concerned citizens, and listening to their observations and opinions to develop the mechanism, and it was taken into consideration from the reality of their actual experience, and that Within the Authority’s approach to the involvement of stakeholders in the development processes that are being implemented on a permanent basis for the tax systems.

Al-Bustani explained that the recovery process is currently being carried out with simple and clear procedures through the electronic recovery platform, where the refund request is submitted with the supporting documents, and the citizen eligible for redemption receives a notification asking him to submit the necessary documents to complete the authority’s processing of the refund request, and after verifying the documents, the citizen is notified of his entitlement and ensures that Match the refund amount with the submitted tax invoices, then the refund amount will be transferred to the applicant’s bank account after being notified of the final approval.

The documents required to submit the refund request include a copy of the applicant’s family book, the building permit included in a certificate of completion issued by the municipality, a copy of the applicant’s Emirates ID, and a document showing the date of occupancy of the building (for example: the electricity and water service connection bill), while the basic conditions are concentrated For the refund, the applicant must be a UAE national, and that the expenses incurred are related to building a new home that will be used exclusively as a home for the applicant and/or his/her family/ where the refund does not apply to additions to the house, and that the expenses are related to basic and specific goods and services related to business Consultant, contractor and building materials.

The Director General of the Federal Tax Authority stated that the electronic system for refunding value-added tax for tourists is one of the most important systems launched by the Federal Tax Authority, as part of its plans to build an integrated platform of electronic systems to improve the quality of life, reflecting the efforts made to implement the state’s vision to make the UAE one of the best and most countries in the world. A development, as the system shows the civilized and upscale face of the country, and enjoys very high satisfaction rates from the tourists who use it, due to its rapid completion of refund requests, ease of procedures, and clarity.

Since the launch of the system in 2018, the authority has conducted many development and modernization operations on the system, by introducing more facilities to simplify and speed up the steps for recovering tourists who meet the legal conditions for tax refund, and the system has witnessed remarkable growth rates with the steady increase in the momentum of the tourism sector in the country in the past months. .

He pointed out that the electronic tax refund system includes integrated mechanisms for direct electronic linkage between the air, sea and land ports of the country with more than 13.8 thousand stores registered with the authority, allowing tourists to submit tax refund requests on their purchases through the system that relies on the latest technologies, for those who are eligible for a refund Tax in accordance with the conditions and criteria specified in the decisions issued in this regard.

And he indicated that the self-service for tax refunds for tourists was launched with the aim of providing more facilities. The “self-service machines” are characterized by being equipped with all the necessary technical means to complete the tax refund procedures completely automatically, while employees from the operating company are located near the self-service machines to provide assistance to tourists when The need for this, as the tax refund does not take long.

“Self-service machines” provide the opportunity for the tourist to submit tax invoices for his purchases from registered sales outlets for automated devices, accompanied by his passport and credit card, and he can recover the tax without a maximum by transferring the refundable tax value to his credit card account, and to request a refund in cash is the maximum for one day 7 thousand dirhams.

During the first phase of providing this advanced service, Planet, which is authorized by the Federal Tax Authority to operate the system, installed 45 “self-service machines” in the departure ports covered by the system, and with the beginning of 2020, the scope of self-service tax refunds for tourists was expanded to include many centers The main commercial / malls / and hotels, in addition to the availability of this service at the exit points of tourists to the country.

He pointed out that the total number of “self-service machines” to refund the tax for tourists in the country amounted to more than 81, including 45 in the outlets for tourists to leave the country, 18 in the main commercial centers / malls, and 8 machines in hotels, equipped with all the necessary technical means to complete the refund procedures. Tax for tourists is fully automated.

He stated that the Federal Tax Authority launched, through its website, the services of issuing certificates of tax domicile and commercial activities, whose issuance tasks were transferred from the Ministry of Finance to the authority in implementation of the Cabinet decision regarding fees for services provided by the authority, stressing that there are advantages to issuing certificates to those registered in the tax system due to the availability of all their data. With the authority’s database, they can apply for tax certificates with direct and quick electronic procedures.

The Director General of the Federal Tax Authority said that a noticeable demand was observed by investors for these services, as the “tax domicile certificate” is a document to enable the applicant to benefit from the agreements to avoid double taxation to which the UAE is a party, while the “certificate of commercial activities” is a document. Issued by the authority to enable the applicant to recover the value added tax imposed on him in various countries of the world that allow the return of value added tax for business.

During the first phase of providing this advanced service, Planet, which is authorized by the Federal Tax Authority to operate the system, installed 45 “self-service machines” in the departure ports covered by the system, and with the beginning of 2020, the scope of self-service tax refunds for tourists was expanded to include many centers The main commercial / malls / and hotels, in addition to the availability of this service at the exit points of tourists to the country.

He pointed out that the total number of “self-service machines” to refund the tax for tourists in the country amounted to more than 81, including 45 in the outlets for tourists to leave the country, 18 in the main commercial centers / malls, and 8 machines in hotels, equipped with all the necessary technical means to complete the refund procedures. Tax for tourists is fully automated.

He stated that the Federal Tax Authority launched, through its website, the services of issuing certificates of tax domicile and commercial activities, whose issuance tasks were transferred from the Ministry of Finance to the authority in implementation of the Cabinet decision regarding fees for services provided by the authority, stressing that there are advantages to issuing certificates to those registered in the tax system due to the availability of all their data. With the authority’s database, they can apply for tax certificates with direct and quick electronic procedures.

The Director General of the Federal Tax Authority said that a noticeable demand was observed by investors for these services, as the “tax domicile certificate” is a document to enable the applicant to benefit from the agreements to avoid double taxation to which the UAE is a party, while the “certificate of commercial activities” is a document. Issued by the authority to enable the applicant to recover the value added tax imposed on him in various countries of the world that allow the return of value added tax for business.

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