The Federal Tax Authority has announced plans to transition to the "Integrated Tax Management System," a comprehensive initiative aimed at overhauling its technical infrastructure.
Transformative Tax Management
This transformative project includes the rollout of smart applications designed to enhance the tax experience for individuals subject to value-added tax (VAT). This initiative is part of broader efforts to improve service efficiency and reduce customer burdens, as highlighted in a recent parliamentary report.
Approved during the first regular session of the 18th legislative term by the Federal National Council, the report underscores VAT as a pivotal revenue source, diversifying the state's income streams. This economic strategy not only supports the provision of high-quality government services but also reduces dependence on traditional oil revenues, aligning with long-term national objectives.
Legal Framework and Operational Mandate
Established under Federal Decree Law No. 13 of 2016, the Federal Tax Authority is entrusted with managing, collecting, and enforcing federal taxes, including VAT and excise duties, in accordance with pertinent legislation such as Federal Decree No. 8 of 2017 and Federal Decree-Law No. 7 of 2017. The authority is also mandated to innovate public policies, ensuring tax procedures align with evolving economic landscapes.
In response to stakeholder feedback, particularly regarding VAT refund processes for new home construction, the Authority has made significant strides. It has extended the submission window for refund requests from six to twelve months post-completion, significantly enhancing customer satisfaction. Moreover, streamlined procedures have reduced response times for VAT refund requests, leveraging external audits to verify invoice authenticity and ensure fiscal prudence.
The Authority's commitment to modernization extends beyond operational efficiency to encompass strategic partnerships with municipalities and stakeholders. These collaborations aim to promote tax compliance and enhance public awareness through workshops and digital outreach programs. Such initiatives not only improve service quality but also foster a culture of record-keeping and compliance among taxpayers.
Looking ahead, the Federal Tax Authority is poised to implement additional transformative projects, including the "Muwafaq" initiative aimed at easing tax compliance for small and medium-sized enterprises (SMEs). This package includes the introduction of specialized tax agents and an electronic invoicing system, anticipated to streamline processes and bolster sectoral competitiveness. These proactive measures underscore the Authority's commitment to driving positive economic impact through agile and responsive governance.
Furthermore, efforts to enhance electronic linkages with land and property departments signify a pivotal step toward real-time verification of transactions. This integration promises to expedite tax procedures, thereby facilitating business operations and reinforcing fiscal transparency across sectors.
The Federal Tax Authority's adoption of the Integrated Tax Management System marks a milestone in its journey towards operational excellence and customer-centric service delivery. By embracing technological advancements and fostering strategic partnerships, the Authority not only enhances administrative efficiency but also reinforces its role in advancing national economic resilience and sustainability. This holistic approach underscores its pivotal role in shaping a robust fiscal framework capable of supporting future growth and prosperity.