I recently changed from a free zone to a DED onshore licence after being advised this was the correct licence-type for my business. As part of the change, I was required by the DED to substantially change the name of the business. The business has been running for some years and other than those two changes, the customers, suppliers and operations are essentially the same. Do I need to apply for a new VAT and tax registration number or can I just continue to use my existing TRN without advising the Federal Tax Authority of the change? It doesn't make any sense to me to deregister the old company and apply for a new TRN. If I did this, I might be fined for having breached the mandatory registration limit without registering before, when in fact I have been registered since January 1 last year. KC, Dubai
You are correct; you cannot continue with the existing registration and TRN without notifying the FTA of the change. What the FTA has advised in this situation is that you file an amendment to your existing registration and update the registration with the new name and trade licence. They also require a letter on company letterhead, signed and stamped, that explains why you have changed your business name. Once approved, they will make an amendment to the VAT registration name to reflect the updated company branding.
The letter needs to be attached to your amendment in the FTA portal. You are usually limited to attaching only one document in each available upload, so combine documents into one PDF if you need to upload more than one. I recommend attaching both the old and new trade licences with the letter and the existing VAT certificate.
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The FTA has requested I amend my VAT registration and supply an updated trade licence and owner's passport, which have both expired since my first registration. I cannot get past the bank details page on the portal. What can I do? UP, Ajman
When registration first opened for VAT at the end of 2017, the registration process asked for company bank details but providing them was not mandatory. You could skip this page and move on and complete the registration. This meant that small businesses not operating a company bank account, who were using the personal account of the owner, or even cash, could register for VAT. These companies have been filing returns and making payments without any issue.
At some point during 2018, the FTA made it mandatory to provide company bank details and therefore you cannot now register, file an amendment or receive a VAT refund unless you have company bank account details included in the FTA portal. The only way to file the required amendment is to open a company bank account. This can be a time consuming and frustrating process as many banks are reluctant to open accounts for small businesses, and it can take a month or so before the account is operational.
The FTA seem to be taking a pragmatic view with the timing of registered businesses completing the amendment; although, they ask for it to be carried out within five days, they do not appear to be penalising those taking much longer.
I already paid my VAT dues via an exchange house but I did not submit the return online. What do I need to do? Can I still do this if I have missed the filing deadline? LS, Abu Dhabi
You need to file the missed return on the FTA portal as soon as possible. You cannot file any subsequent returns until every previous quarter’s return has been filed. I assume from the question that you paid the VAT by the deadline. Unfortunately, if you look on your payments tab in the FTA portal you will have been fined Dh1,000 for the late return; you will also be charged interest on the amount of tax due from the date of the return deadline to the date that you completed the filing. Even though you made the payment on time, the FTA does not recognise any payments until the return has been filed. Interest can build up quickly, so act quickly
Lisa Martin, a chartered accountant with more than 20 years' commercial finance experience, is the founder of accounting, auditing and VAT consultancy, The Counting House. Email any VAT queries to pf@thenational.ae
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Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8
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Name: HyveGeo
Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government
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Alia’s winning experiment examined how genes might change under the stresses caused by being in space, such as cosmic radiation and microgravity.
Her samples were placed in a machine on board the International Space Station. called a miniPCR thermal cycler, which can copy DNA multiple times.
After the samples were examined on return to Earth, scientists were able to successfully detect changes caused by being in space in the way DNA transmits instructions through proteins and other molecules in living organisms.
Although Alia’s samples were taken from nematode worms, the results have much bigger long term applications, especially for human space flight and long term missions, such as to Mars.
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There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
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Power: 639hp
Torque: 1,130Nm
Transmission: Single-speed automatic
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Company profile
Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices
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Cory Sandhagen v Umar Nurmagomedov
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Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
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Indika
Developer: 11 Bit Studios
Publisher: Odd Meter
Console: PlayStation 5, PC and Xbox series X/S
Rating: 4/5
The specs
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Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
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Stars: Josh Hutcherson, Morgan Freeman, Greg Germann, Lovie Simone
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Rating: Three out of five stars
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Founders: Samer Masri, Keswin Suresh
Sector: HealthTech
Total funding: $800,000
Investors: Flat6Labs, angel investors + Incubated by Hub71, Abu Dhabi's Department of Health
Number of employees: 10
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Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
Company profile
Company name: Ogram
Started: 2017
Founders: Karim Kouatly and Shafiq Khartabil
Based: Dubai, UAE
Industry: On-demand staffing
Number of employees: 50
Funding: More than $4 million
Funding round: Series A
Investors: Global Ventures, Aditum and Oraseya Capital
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Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
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Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates