Value Added Tax (VAT)
Dear Valued Customer,
Starting from 1st January 2018, most of SamTech’s products and services shall be subject to 5% value added tax in compliance with the Federal Laws & Regulations levying and regulating the tax in the UAE.
VAT is a consumption tax that the end user is obligated to pay and SamTech will be only acting as a collection Agent on behalf of the taxation authority.
SamTech is legally obliged to comply with this Government mandate from 1st January 2018.
1. What is VAT?
Value Added Tax (VAT) is an indirect tax that is being introduced by the UAE Government, which will be payable by both business and Individuals.
2. What is SamTech’s Tax Registration Number?
SamTech’s Tax Registration Number is 100040905000003.
3. When will the VAT go into effect and what will be the rates?
VAT will be introduced across the UAE on 1 January 2018 at a standard rate of 5%.
4. How will VAT apply to SamTech products and services?
VAT will apply to applicable products and services at a rate of 5%. Further details regarding VAT application on our products and services will be made available in the coming weeks.
5. Is it compulsory to pay VAT?
Exceptions to VAT are only by law, and these are published by the Federal Tax Authority. There is a possibility for business owners to claim back their VAT payments, provided they have registered for VAT and meet the requirements. For further details, please visit www.tax.gov.ae
6. Will SamTech charge VAT on my bills?
From 1st January 2018, most of the products and services provided by SamTech shall have VAT applied upon their charges / fees in compliance with the provisions of the law and its Executive Regulations. Transitional arrangements will apply for contracts and/or services which span 1st January 2018.
7. How can a business register for VAT and receive a Tax Registration Number (TRN)?
Businesses can register for VAT tax through the e-services section on the FTA website. However, first, they need to sign up an account first. For more details about VAT tax registration, please read VAT registration User Guide .
8. I am a Business owner. I have registered with the UAE Federal Tax Authority and have received my certificate and Tax Registration Number (TRN). Do I need to share this with SamTech?
Yes, once you receive your Tax registration number (TRN) you are required to send this to us. This is important for us to update your account details, and ensure that your TRN is reflected on our monthly tax invoice. The inclusion of your Tax Registration Number (TRN) on our bill is required for you to claim back the incurred VAT within your VAT return.
9. How can Business Customer provide Tax Registration number (TRN) to SamTech?
All SamTech Business customers who are entitled to recover their input VAT must officially submit their VAT registration details including Tax Registration Number (TRN) with supporting evidence to SamTech latest by 21st December 2017 either through contacting their Account Manager or on www.SamTech.ae/businesstrn in order to be provided with a Full VAT Invoice in January 2018.
10. Will it be possible to issue cash receipts instead of VAT invoices?
A supplier registered or required to be registered for VAT must issue a valid VAT invoice for the supply. To be considered as a valid VAT invoice, the document must follow a specific format as mentioned in the legislation. In certain situations the supplier may be able to issue a simplified VAT invoice. The conditions for the VAT invoice and the simplified VAT invoice are mentioned in the legislation.
11. Will there be transitional rules?
Special rules will be provided to deal with various situations that may arise in respect of supplies that span the introduction of VAT. For example:
• Where a payment is received in respect of a supply of goods before the introduction of VAT but the goods are actually delivered after the introduction of VAT, this means that VAT will have to be charged on such supplies. Likewise, special rules will apply with regards to supplies of services spanning the introduction of VAT.
• Where a contract is concluded prior to the introduction of VAT in respect of a supply which is wholly or partly made after the introduction of VAT, and the contract does not contain clauses relating to the VAT treatment of the supply, then consideration for the supply will be treated as inclusive of VAT. There will, however, be special provisions to allow suppliers to charge VAT in situations where their recipient is able to recover their VAT but where there is no VAT clause.
12. Where can I get more information?
We suggest you visit Federal Tax Authority website Federal Tax Authority website for more information.