INSIGHTS

What Are the New Corporate Tax Decisions? The following decisions reshape corporate tax compliance: Ministerial Decision No. 229 & 230 of 2025Updated classification of Qualifying vs. Excluded Free Zone Activities Ministerial Decision No. 84 of 2025Mandatory audited financial statements FTA Decision No. 7 & 8 of 2025Strict rules for tax

From Flat Tax to Tiered Volumetric Model Previously, sweetened beverages were taxed at a flat 50% excise rate.The new framework introduces volume-based taxation linked to sugar density, making measurement accuracy critical. This creates: Higher compliance risk Greater documentation requirements Increased FTA scrutiny Who Is Most Affected? Beverage manufacturers Importers and

Excise Tax compliance is becoming more technical in the UAE, and businesses are expected to maintain stronger controls around pricing, product category, calculations, and evidence — not just filing returns. Below is a practical checklist to help you spot gaps before they become expensive. Common Excise Compliance Requirements: 1) Correct

VAT penalties in the UAE don’t only hit businesses that avoid tax. They often hit businesses that miss a deadline, submit incorrect information, or fail to keep the right documents even when the VAT itself is paid correctly. That’s exactly why the FTA issued the VAT Administrative Exceptions Guide (VATGEX1)

Many businesses focus on which products are subject to Excise Tax — but far fewer pay enough attention to how the Excise Price is calculated. That’s where risk (and unexpected tax exposure) often begins. A UAE Excise Tax update issued in Q4 2025 refreshes the rules on Excise Goods, applicable

Many businesses treat Excise Tax as a final, non-recoverable cost. But that’s not always true. The UAE Federal Tax Authority issued FTA Decision No. 11 of 2025, which introduces additional cases where Excise Tax paid on Excise Goods may be deducted, along with clear deduction controls that businesses must follow.

Many businesses think VAT compliance means submitting VAT returns on time. But the UAE’s main VAT law — Federal Decree-Law No. 8 of 2017 (as amended) — makes it clear that VAT compliance comes down to one question: Can you prove your VAT position with correct invoices, correct records, and correct

Summary: The Federal Tax Authority allows specific administrative exceptions to help businesses manage VAT obligations efficiently. The Dec 2025 VATGEX1 guide clarifies what’s allowed and how to apply. Highlights: Scope: Exceptions only apply to invoices, credit notes, export evidence, and export timelines. Common Errors to Avoid: Wrong category, incomplete documents,

Certain products are exempt from the new calculation mechanism. Points of Alignment: Low-sugar category: <5g sugar per 100ml — automatically classified as low-sugar. Artificially sweetened category: Drinks containing only artificial sweeteners. Effective date: 1 Jan 2026. All taxable persons must comply from this date. conclusion Not all drinks are taxed

VAT administrative exceptions let eligible businesses comply efficiently without breaching the law. The FTA’s VATGEX1 guide (Dec 2025) details the process, eligible cases, and submission rules. Key Takeaways: Eligible Cases: Tax Invoices, Credit Notes, Export Evidence, Export Period extensions Who Can Apply: Registrants, Tax Agents, or Legal Representatives Submission Process:

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