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Tax Registration Number a must for charging VAT

Ministry of Finance approves first purchase invoice with VAT

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Gulf News

Dubai: There are some traders who are charging value-added tax (VAT) without showing the Tax Registration Number (TRN) on the receipt.

A tax invoice must include the name, address, and TRN of the registrant making the supply. An invoice must have a sequential tax invoice number or a unique number and date of issue, which enables identification of the tax invoice and the order of the invoice in any sequence.

Dipesh Shah, a Dubai-based chartered accountant, said customers should not pay VAT unless businesses issue proper Tax Invoices including TRN number. If the business has collected VAT, irrespective of proper Tax Invoice, it shall include it in the Tax Return and pay it to the tax authority.

The law says that the invoice should have a clear description of the goods or services supplied, it should also mention the unit price, the quantity or volume supplied, the rate of tax and the amount payable expressed in UAE dirham should be specified.

A restaurant in Sharjah on Monday issued bills without showing the TRN and charging 5 per cent VAT to the total. A spokesperson said: “We came to know about the TRN issue today. The issue is solved now.” 

 

Ministry of Finance approves first purchase invoice with VAT

ABU DHABI: The Ministry of Finance (MoF) on Tuesday issued the first VAT-inclusive purchase order, and approved the first VAT invoice on its federal financial system, becoming the first federal entity to implement tax procedures and issue a tax invoice in 2018.

The ministry provides a fully-integrated system, a technical support team, as well as a telephone number dedicated to respond to any inquiries related to VAT (value-added tax) from any federal entities linked to the system.

Mariam Al Amiri, Assistant Under-Secretary for the Management of Financial Resources, emphasised the ministry’s commitment to the country’s laws and regulations, including the tax system. “The Ministry of Finance continues its efforts to facilitate all government finance procedures, specifically VAT transactions. Issuing the first purchase invoice reflects the efficiency and ease of use of the system, and highlights the ministry’s efforts to facilitate procurement processes for all federal entities linked to the federal financial system,” Al Amiri said.

VAT came into effect on Monday, in accordance with the unified VAT Agreement for the Gulf Cooperation Council states. Over the past months, the Ministry of Finance and the Federal Tax Authority have held a series of workshops and practical training sessions for users of the federal financial system, to build awareness on the tax system, including its role in the fulfilment of our leadership’s vision to build a sustainable knowledge economy for future generations.

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