This blog outlines the various obligations of a tax registrant in the UAE region based on FTA guidelines. These obligations include:
- Registering for Tax: This is the first among the primary obligations of a tax registrant in the UAE region. Every tax registrant must register for tax within the specified timeframe. This is usually within 20 business days of meeting the registration criteria.
- Maintaining Records: This is the second obligation of a tax registrant in the UAE region. Tax registrants must keep accurate and complete records of all taxable transactions. These relevant records include invoices, receipts, and other supporting documents. Furthermore, a tax registrant must keep these documents for a minimum period of 5 years.
- Filing Tax Returns: This is the third obligation of a tax registrant. A tax registrant must file tax returns as per the designated schedule and time frame. He or she also needs to ensure all returns are complete and accurate. Also make sure as a tax registrant you submit it on time.
- Paying Tax: The tax registrant must pay all taxes due on time. This includes any penalties or interest charges for late payments too.
- Compliance with Tax Laws: This is another obligation of a tax registrant. Tax registrants must follow all applicable tax laws and regulations. This includes providing any information or documentation requested by the tax authorities too.
- Displaying TRN: Display your Tax Registration Number (TRN) on all your business documents. Especially invoices and bills.
- Inform the Tax Authority of Changes: Inform the tax authority of any changes to your business. And changes to personal details as well. But make sure these changes affect your tax registration or obligations.
Failure to follow these obligations can result in penalties and fines. Yet, it can be severe as well. It is a must to ensure that you know your obligations as a tax registrant. Moreover, make sure to meet them.