This week, let's shift our focus away from corporate tax. As we approach the six-month mark of its second year, it has become evident there are numerous gaps in the details, many of which I have addressed in this column previously. With the deadline for the first returns fast approaching, we can expect a rush of legislation to fill these gaps.
As advisers, we are bracing ourselves for many late evenings of analysing these changes.
Today, I am pleased to share some positive news. The recent Federal Decree Law No 16 of 2024 has brought about amendments to the UAE value-added tax law of 2017. One of the key changes is the introduction of e-invoicing. Before delving into the details, let us first provide some background information.
When an entity wishes to reclaim VAT, it is required to keep the originals of all documentation relating to that. No photocopies or scanned copies are permissible. Additionally, the originals must be legible.
This requirement poses a challenge in today's world of environmentally friendly thermal printers, as they may not produce documents that meet the necessary standards for compliance with the legislation. Business owners should be aware that, in addition to penalties, interest is also payable on any input VAT that needs to be repaid. The interest charges accrue from the date the funds were initially reclaimed.
One way to ensure compliance is by following the 2017 Certification Guidelines for Tax Accounting Software. But this required the manufacturer of the accounting software used by the invoicing party to be deemed, after annual review, compliant by the Federal Tax Authority.
This list has never been particularly long and, given the global reach of most software providers, it was understandably not often a priority.
One might imagine the move from software installed in-house solutions to cloud solutions might improve matters. However, what it has done is speed up the move from catering to national or smaller regional markets to offering homogeneous products. With internationally accepted accounting standards now the norm, software providers are left wondering what more they can do to stay competitive.
Recognising that e-invoicing requires two system capable partners, this mandatory process, which begins on July 1, 2026, will apply to both business-to-business and business-to- government transactions only.
With any announcement of this nature, there are often many details that remain unknown. However, the principles and start date have been set. It is time to begin preparations.
Some of the Gulf’s VAT framework has been borrowed from the EU, with member countries aligning their invoicing rules as an example. This will come into force once all constituent countries have implemented VAT. The original legislative deadline has passed without much discussion.
To navigate this new system, individuals will need to familiarise themselves with various acronyms, including DCTCE (Decentralised Continuous Transaction Control and Exchange). This approach requires mandated users to communicate as buyers and sellers through a Peppol (Pan-European Public Procurement On-Line) network.
In layman’s terms, it’s an online protocol that supports cross-border transactional interoperability. Users will be able to communicate and share documents.
Think of Peppol as the programming language, which means you are going to need specific software to harness it. These software solutions will be provided by Ministry of Finance-approved platforms, known as Accredited Service Providers (ASPs). A list of these is expected by the end of 2024.
While the initial reaction may be to assign the responsibility to the finance director, a multidisciplinary approach is necessary for successful integration. For organisations lacking a standard operating procedures manual, the complexity of the process is heightened. However, it is never too late to begin developing one to streamline operations and ensure compliance.
The greatest benefits might accrue to the largest organisations that have an imbalance between labour and capital. In our region, we tend to prioritise cheaper labour over implementing IT solutions that could enhance efficiency and reduce costs in the medium term.
Take a moment to assess the number of people in your business who are solely responsible for processing paper. E-invoicing represents a form of automation that can greatly benefit operations. What other areas within the business could potentially benefit from similar enhancements?
More than two decades ago, I completed my first finance function transformation in London. The accounts payable department of 46 employees was streamlined down to two IT professionals who managed the previously paper-based operations. Since then, technology has advanced significantly.
In the realm of financial disclosure, many entities are hesitant to share their financial information with the public and private sectors, or government.
VAT returns may provide some insight into an organisation's financials during audits by the Federal Tax Authority, but under the new system the relevant authorities will be automatically sent your live transactional data as it happens. Through the use of advanced AI software, this could be interrogated.
It is crucial for businesses to have a clear understanding of their financial operations before external parties uncover any discrepancies.
David Daly is a partner at the Gulf Tax Accounting Group in the UAE
Killing of Qassem Suleimani
Killing of Qassem Suleimani
WORLD'S%2010%20HIGHEST%20MOUNTAINS
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Results
Ashraf Ghani 50.64 per cent
Abdullah Abdullah 39.52 per cent
Gulbuddin Hekmatyar 3.85 per cent
Rahmatullah Nabil 1.8 per cent
RESULTS: 2018 WORLD CUP QUALIFYING - EUROPE
Albania 0 Italy 1
Finland 2 Turkey 2
Macedonia 4 Liechtenstein
Iceland 2 Kosovo 0
Israel 0 Spain 1
Moldova 0 Austria 1
Serbia 1 Georgia 0
Ukraine 0 Croatia 2
Wales 0 Ireland 1
'Manmarziyaan' (Colour Yellow Productions, Phantom Films)
Director: Anurag Kashyap
Cast: Abhishek Bachchan, Taapsee Pannu, Vicky Kaushal
Rating: 3.5/5
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
The biog
Name: Greg Heinricks
From: Alberta, western Canada
Record fish: 56kg sailfish
Member of: International Game Fish Association
Company: Arabian Divers and Sportfishing Charters
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%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E261hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E400Nm%20at%201%2C750-4%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.5L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C999%20(VX%20Luxury)%3B%20from%20Dh149%2C999%20(VX%20Black%20Gold)%3C%2Fp%3E%0A
MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')
Red card: Rodrigo Bentancur (Juventus)
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Where to apply
Applicants should send their completed applications - CV, covering letter, sample(s) of your work, letter of recommendation - to Nick March, Assistant Editor in Chief at The National and UAE programme administrator for the Rosalynn Carter Fellowships for Mental Health Journalism, by 5pm on April 30, 2020.
Please send applications to nmarch@thenational.ae and please mark the subject line as “Rosalynn Carter Fellowship for Mental Health Journalism (UAE programme application)”.
The local advisory board will consider all applications and will interview a short list of candidates in Abu Dhabi in June 2020. Successful candidates will be informed before July 30, 2020.
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Men’s singles
Group A: Son Wan-ho (Kor), Lee Chong Wei (Mas), Ng Long Angus (HK), Chen Long (Chn)
Group B: Kidambi Srikanth (Ind), Shi Yugi (Chn), Chou Tien Chen (Tpe), Viktor Axelsen (Den)
Women’s Singles
Group A: Akane Yamaguchi (Jpn), Pusarla Sindhu (Ind), Sayaka Sato (Jpn), He Bingjiao (Chn)
Group B: Tai Tzu Ying (Tpe), Sung Hi-hyun (Kor), Ratchanok Intanon (Tha), Chen Yufei (Chn)
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
COMPANY PROFILE
Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar
Based: Dubai, UAE
Founded: 2014
Number of employees: 36
Sector: Logistics
Raised: $2.5 million
Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
MATCH INFO
Brescia 1 (Skrinia og, 76)
Inter Milan 2 (Martinez 33, Lukaku 63)
BIG SPENDERS
Premier League clubs spent £230 million (Dh1.15 billion) on January transfers, the second-highest total for the mid-season window, the Sports Business Group at Deloitte said in a report.
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The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
