UAE VAT Update: the new service on the FTA portal – the Clearance Certificate Request
The UAE Federal Tax Authority (FTA) has recently announced the issuance of the Clearance Certificate as an additional service on its portal.
As of now, the FTA has not released its guidance on the newly released services. Generally, the Clearance Certificate is an official confirmation provided by the Tax Authority that a tax registrant’s standing is current and tax affairs are in order.
This service is available only for the tax registrants and the form can be found on the e-services page.
We understand that the said Certificate can be issued for the following reasons:
- Ownership Change
- Business Closing
- Below Voluntary Threshold
- Below Mandatory Threshold
The applicants would be required to submit the relevant supporting documents and comments to justify the request for a clearance certificate
We expect the FTA to release a guide explaining the use of this option, examples of the supporting evidence and the process it would follow on submission of the form.
We foresee that the form can be used where the businesses need to provide documentary evidence of the tax and penalties outstanding during liquidation, cancellation of licenses, ownership change in the company. The FTA would do the necessary checks and request for additional documents before issuing the Clearance Certificate.
How can we help?
Rethink as an entity provides VAT advisory, optimization, registration, implementation, compliance, and training services in Bahrain, UAE, KSA, and the GCC.
Our team of senior qualified tax advisors, finance experts, and tax accountants are happy to provide practical help and advice, will ensure timely and cost-effective VAT services.
Based on our local and international experience we understand that VAT is a complex tax and will certainly suffer numerous changes in the upcoming years. Rethink’s VAT services are aimed to suit both basic and complex returns for SMEs and larger enterprises.
Assistant Tax Manager