ANIL KUMAR Auditing & Tax Consultancy LLC

ANIL KUMAR Auditing & Tax Consultancy LLC We are professional audit, Accounting and Tax consultancy firm in U.A.E where our parameters of suc

06/06/2026

HOW TO APPLY REVERSE CHARGE MECHANISM ON METAL SCRAP TRADING / VAT 5% APPLY ON MET SCRAP TRADING ?

Recently, we have been receiving many enquiries regarding the charge mechanism related to metal scrap trading.
Below, we explain in detail the process of metal scrap trading from the perspective of both the buyer and the seller.
Usually, there are two parties involved in normal trading:
Buyer and Seller
________________________________________
From the Seller’s Side
There are two treatments:
• Treatment 1:
If the seller is selling to a VAT-registered buyer, the supplier does not charge VAT or report output VAT.
Treatment 2:
If the seller is selling to an unregistered buyer, the seller must charge 5% VAT.
In general, VAT is not charged on scrap sales under the reverse charge mechanism, but the transaction must still be reported in the FTA VAT return. Therefore, scrap can be sold without VAT, subject to certain conditions.
What are the conditions?
1. The seller must collect a declaration from the buyer confirming that the scrap is being purchased for the purpose of resale, manufacturing, or reproduction etc..
2. The buyer must be a VAT-registered person in the UAE.
________________________________________
From the Buyer’s Side
The buyer is required to record the transaction under the reverse charge mechanism.
What is the reverse charge mechanism?
It means that the buyer is responsible for accounting for VAT instead of the seller. The buyer must calculate VAT on the purchase, but no VAT is paid to the seller.
From an accounting perspective, the buyer should record both output VAT and input VAT, which will offset each other, resulting in a nil VAT impact, subject to eligibility.

Eid Mubarak🥰
27/05/2026

Eid Mubarak🥰

WE ARE HIRING!INTERNAL / STATUTORY AUDITOR – UAE (3 Vacancies) for our Dubai and Sharjah officesQualifications:CA Inter ...
30/04/2026

WE ARE HIRING!

INTERNAL / STATUTORY AUDITOR – UAE (3 Vacancies)
for our Dubai and Sharjah offices
Qualifications:
CA Inter with 2 years of audit experience, or
CA Qualified (Freshers may apply), or
M.Com or B. Com with 2 years of audit experience

How to Apply:
Send your CV to: [email protected]

31/12/2025

Celebrating our first year in Sharjah and welcoming a New Year filled with opportunities.

| HAPPY NEW YEAR |

26/12/2025

How to Recover FTA Account through Link TRN
How can we recover our FTA account, If you cannot access the registered email of our FTA portal, the registered mobile, the existing login, or password of the FTA portal, or if someone else controls the FTA profile
In such a case we can back our account through the option “Link TRN”
What is Link TRN and it how it works.
Below is the practical example to get back out FTA account access without any hassle.
The first step is to create a new FTA Account
You can create a new account in the Emara Tax portal through either of the following methods:
• New registration by using new email ID with company details, or
• By using UAE PASS
Step TWO,
After creating the new account, go to: other services, we can see “Link TRN to New email address”.
Click create new
Next, you will see a screen detailing the necessary documents and the time needed for linking the TRN, among other things. Click start
Then you will get a window with option of Add TRN in the top right corner , click Add trn and start
Then you will get an option to choose user type. “Select taxable person TRN/TIN”
Then enter our TRN
Attach Signatory letter stating name and business contact details, old and new email address, along with attach Trade License, Emirates ID & Passport copy of the authorized signatory.
Proceed to next step
Verify, tick the box and submit
During submission, you will receive a verification code from FTA to confirm the email.
Once submitted, FTA usually reviews and may approve the request within 1–5 working days.
_ANILKUMAR

Honouring a Journey of Vision .😍
02/12/2025

Honouring a Journey of Vision .😍

30/07/2025

WHAT ARE THE MANDATORY FIELDS FOR A SIMPLIFIED TAX INVOICE? CHECKLIST FOR FOR TAX INVOICE .
It is crucial to check and confirm that your invoice format adheres to the FTA requirements, particularly the simplified tax invoice you are currently using. A simplified tax invoice is normally used by small and medium establishments such as restaurants, mobile shops, retailers in malls, cafeterias, supermarkets, etc.
If you are not adhering to the tax invoice checklist, there is a risk of incurring penalties due to errors or mistakes in the invoice.
A registrant may issue a simplified tax invoice in the following cases:
1. Where the recipient or customer is not registered for VAT; or
2. Where the recipient is registered for VAT but the consideration or value for the supply does not exceed AED 10,000.
What are the mandatory requirements

1. The words “ Invoice” should be clearly displayed on the invoice
2. Tax Registration Number (TRN) , Date of issuance, name& address of the registered supplier must be shown.
3. Price displayed should be inclusive of VAT
Eg For example, suppose the item’s price before VAT is 100, the VAT is 5, and the total is 105. This breakdown should be clearly stated on the invoice, and the total should always include VAT
4. The VAT Amount charged must be clearly mentioned.
Make sure that your invoice includes all the necessary fields. Administrative penalties may apply for any violations

_ANILKUMAR

17/06/2025

How to change the tax period for the purposes of corporate tax, with a practical example?
Suppose If your company's tax period was not correctly chosen during initial registration , or you want to the_tax_ period end date for other reasons such as:
1) company ,
2) commercial, economic , or legal reasons for changing the period,
3) or for the purpose of grouping or financial reporting, etc.
In that case, you can apply to the FTA to change the tax period, subject to certain conditions. The main conditions are:
1) you must apply three months before the actual return due date,
2) and it is also important that the tax period may extend to a maximum of 18 months or shorten the following tax period to a minimum of 6 months and a maximum of 12 months.

Practical example,
how to change the the tax period?
Steps 1
1.login into the EmaraTax account using your login credentials or using UAE Pass and
Open dashboard and tap View
Select the company name from the left side menu bar
2.Go to the corporate tax line and click 3 dots from action Select ‘ Corporate Tax '.
3.Read instructions, click the box and start
4. Your TRN, Entity Type, Entity Sub-Type, Legal Name in English and Legal Name in Arabic will be auto populated by the system. •
5. Enter the detailed description of the reason for changing the Tax Period and upload supporting documents. Example last year financial report, Board resolution, Memorandum etc…
6.Your Current Corporate Tax Period is auto populated by the system. • Select the New Corporate Tax Period from the drop-down
7.System will display the preferred options. Select the appropriate option for change to have effect. Then Click Next
8.This section will help you to make sure that you have completed the application correctly and included all the relevant documents. After carefully reviewing all of the information entered on the application, mark the checkbox to declare the correctness of the information provided in the application. Click ‘Submit’ to submit the application.

After your application is submitted successfully, a Reference Number is generated for your submitted application. Note this reference number for future communication with the FTA.

Once the application is submitted, the FTA shall approve, reject and notify the Taxable Person accordingly.
If the FTA requires any further details from you in order to assist with the verification of your application, you will receive an email notification setting out the information required from you.
• Once the FTA confirms acceptance of your application, you will be notified on the decision.
• The status of your application in the dashboard will be updated accordingly. You may check your application status in the dashboard from time to time.
_ANILKUMAR

03/05/2025

CONDITIONS FOR CORPORATE TAX REGISTRATION PENALTY WAIVER -AED 10000

Have you received any administrative from the FTA totaling AED 10,000 for failing to register for corporate tax by the deadline? Or have you still not registered for corporate tax within the deadline that has already passed?
If so, then we now have stronger backing and an initiative from the authority to dismiss or waive those penalties under a straightforward condition.
What is that?
The taxpayer is required to file tax returns or annual declarations within # 7 months from the end of their first tax period.
For instance, if the tax period ends on 31st Dec 2024, then they need to finalize and submit the tax returns and annual declaration on or before July 2025.
What is a tax period, and how can we identify it?
This is the timeframe chosen during , and it is stated clearly on the Corporate Tax Registration Certificate.
The key point of this decision is that individuals who have not yet submitted their registration application can also take advantage of this benefit.
We have two recommendations concerning this initiative:
1. Submit the Corporate Tax return and make the payment right away to avoid waiting until the last minute (i.e., before July 2025).
2. If you haven't registered for Corporate Tax yet and the deadline has passed, you can still proceed with the registration now without any hold-up.

For more details, contact Anil Kumar Auditing, Al Khabeesi Dubai and Clock Tower Sharjah.
Our contact numbers: 0529010017, 06 5620 360
Check out our website: www.anilauditing.ae
Stay tuned!
ANIL KUMAR .

14/02/2025

TAX OR VAT PAYMENTS BY USING CREDIT CARD OR DEBIT CARD.& SERVICE SHARGES. With PRACTICAL examples.

How to make tax payments using a credit card or debit card, and how much are the additional charges we need to pay while making the payment through a card ?
0.68% +5 VAT would be the additional service charges we need to pay along with the principal amount.

For more details,
ANIL KUMAR AUDITING- Al Khabeesi Dubai & Clock Tower Sharjah
Our Direct Contact number- 0529010017 / 065620360
Check Out our Website!
www.anilauditing.ae , & Stay tuned for updates
“We say it, we do it “
CARD_ PAYMENTS SERVICE CHARGES ANIL KUMAR

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Al Gulayaa
Sharjah

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Telephone

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