Q: Someone scammed me. How can I catch him if he disappeared in Dubai? I have his passport info, WhatsApp numbers, national ID card, visit visa page, and some WhatsApp chat. Can I find him with the help of the police?

Q: Dear Mr Elnaggar, Please, I have just created a company in Ajman Free Zone and I have enrolled for VAT, but it got rejected because I didn't reach the mandatory threshold of AED 187000 and I have to provide evidence. So, my question is how can I invoice my customer if I don't have VAT number yet? Also, how can I recover the VAT that I m paying to my supplier? Thanks in advance

Q: Hi Nikhat, How are you? I read your reply on a VAT query and I hope I could get clarification on my confusion as well. You see we are agents (in business set-up consultancy). Basically, we are dealing with another business set-up consultant rather than going directly with the authority, but we wish not to disclose this to our clients that we are dealing with another business set-up consultant. Now, my question is that the other consultant charges VAT to us but the invoice is addressed to the ultimate customer name. So my question is if I charge on top with what they charge, like if their PRO fee is AED 2,000 and, on my side, I charge PRO fee of AED 4,000, should I be charging VAT on the whole AED 4,000 or should I have to break it down and charge only on my top-up since this was not my supply? Thank you!

Q: I hired an agency to close my free zone company in October last year and paid them already. However, I have now been informed by the FDA that the company has not been closed, and I am required to upload a renewed license (which I do not have), otherwise, I will face a penalty. The agency I hired is not responding to my messages. What can I do?

Tax evasion is a serious offence on the local and international levels that had to be controlled and regulated with new laws, in an international effort to combat this violation. As a part of the international community, the UAE had issued a law (Cabinet of Ministers Resolution No. 31 of 2019) in the same direction requiring all in-scope UAE entities to have demonstrable economic substance.

The introduction of the Doctrine in the UAE brings the UAE in line with other jurisdictions that have recently issued economic substance legislation and affirms the UAE’s commitment to addressing concerns around the shifting of profits derived from certain mobile business activities to “no or nominal tax jurisdictions” without corresponding local economic activities.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

The Federal Decree Law on Value Added Tax (VAT Decree-Law), outlines the tax scope, rate, responsibility for tax, supply of goods and services in all cases, including supply in special cases, supply of more than one component, supply via agent, supply by government entities and cases of deemed supply.

The Executive Regulations set the rules and procedures for implementation of the Federal Decree-Law No. (8) of 2017 on Value Added Tax in the United Arab Emirates. The Regulations define the registration process, zero-rate and exempt supplies, calculation of due tax, tax returns, recovery of excess tax, etc.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.