March 29, 2024 | ByMarketing | Corporate Tax, UAE VAT | Updating FTA Account for Taxes The Federal Tax Authority (FTA) regulates all types of taxes, including Corporate Taxes, VAT, excise tax, and more, in the United Arab Emirates. When your business initially registers for a trade or business license, all details about your business, including business activities, contact information, and more, get with the FTA in the United Arab Emirates. Registering your business is not the end of essential tasks for operating your business in the UAE. Despite registering your company with FTA in the UAE, you should keep your accounts up-to-date with the Federal Tax Authority or FTA in this country. As your business grows and changes with time, keeping your records and accounts accurate and updated with the FTA is essential in the United Arab Emirates. However, a few people think there is no Importance of FTA account updates. If you are also among those people who think there is no benefit to updating your FTA accounts, you must spend some time with us. We will provide an in-depth list of keeping your FTA accounts updated. Top importance of keeping your FTA accounts updated The Federal Tax Authority or FTA is a relevant authority that regulates taxes in the United Arab Emirates. In most cases, this authority asks for essential information and data from businesses operating in this country. In addition, companies must keep their accounts updated with the Federal Tax Authority (FTA). The following is the list of top importance for FTA account management: 1. Avoid fines The United Arab Emirates (UAE) tax authorities have the right to impose fines or penalties for inadequate accounts or records. According to the Federal Tax Authority (FTA), businesses must keep accurate and updated accounts in the UAE that clearly mention their expenses, incomes, assets, and liabilities of the business. Remember, the FTA regularly verifies the accounts of businesses operating in the UAE. If the authority verifies your business records from your account and finds improper or outdated information in your records, the authority might charge you a fee. In short, maintaining incomplete or erroneous accounts is seen as non-compliance and will be subject to punishments, like fines. Therefore, you should keep Updating FTA account for taxes. 2. Stay comply Businesses must maintain accurate and current financial accounts to comply with the United Arab Emirates (UAE) tax legislation. The basis of tax compliance ensures that you keep all data of your earnings and expenditures of your business in the UAE. Invoices, bank statements, money records, and more are some of the essential data you must keep accurate and updated to stay compliant with the UAE tax laws. Staying compliant with up-to-date is also essential for auditing and other similar processes. 3. Easy communication Contact information is one of the most essential information you must keep up to date in the FTA account. Remember, the Federal Tax Authority (FTA) uses your contact information, like a phone number or email address, to send important updates and notices in the United Arab Emirates. It means that you will not receive updates or notice from the FTA if you forget to update the contact information on your account with the Federal Tax Authority (FTA) in this country. Therefore, you should keep your eye on FTA account management. 4. Simplify tax filing Simplifying tax filling is another significant Importance of FTA account updates. Indeed, you have guessed it right! Keeping your Federal Tax Authority or FTA account updated with accurate and current information can also simplify the complete process of filing any type of tax, including Corporate, VAT or Value Added Tax, and excise tax. You can obtain the insight to commute tax due, claim deductions and credits, and report income with well-organized and updated information. This factor simplifies the tax filing process and decreases the chances of making mistakes. 5. Easy operation for business activities Easy operation of business activities is one of the updating your FTA accounts in the UAE. However, you must update any change in your business operation to your Federal Tax Authority (FTA) account in this country. Making any change in the business operation can potentially impact the trade license and other permissions of your business in the United Arab Emirates. In addition, you might face several fines. Apart from these importance, there are other importance of keep updating your Federal Tax Authority (FTA) account with the latest and updated information. However, if you do not update the latest information in the FTA account, you will face several problems, including fines and other consequences. Therefore, you should keep updating your FTA account with the latest information to ensure compliance with the UAE tax law. Changes That Require FTA Approval We hope that you have understood the importance of FTA account updates. Indeed, making these changes is crucial, and updating changes in the FTA account is also essential for businesses operating in the UAE. However, there are several changes that must be approved by the Federal Tax Authority (FTA). The following is the list of those changes that require approvals from the FTA: Detail of the applicant Banking details Business relationships About the VAT Application Declarations section Contact details While there are a few changes that you can make in the FTA accounts of the businesses, trying to update essential information, like banking details, basic applicant details, and other crucial information, need approvals from the Federal Tax Authority (FTA). Therefore, you should obtain appropriate permission from the FTA for these essential changes before making an update in the FTA accounts. How can Flyingcolour Tax Consultant help you? Whether you want to file a VAT, corporate, or excise tax return, keeping the FTA accounts up-to-date is essential for all types of taxes in the UAE. However, there are uncountable benefits to updating your FTA accounts with the latest information. Still, there is a little confusion about the Importance of keeping the FTA account updated. Flyingcolour Tax Consultant can help you keep the FTA accounts updated. In addition, our experts can clear all your doubts about the tax landscape of this country. To learn more about the VAT, corporate, or excise tax return, keeping the FTA accounts up-to-date is essential for all types of taxes in the UAE , book a free consultation with one of the Flyingcolour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com. This article was published on 29-03-2024. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent updates or changes