VAT Registration in the UAE
According to The UAE's Federal Tax Authority,

VAT Registration in the UAE

VAT Registration in the UAE

Vat registration in the UAE started in Jan 2018. The UAE Minister of State for Financial Affairs, His Excellency Obaid Humaid Al Tayer, has stated that the UAE will implement VAT Registration in the UAE at the speed of fifty on 1 January 2018. The minister was speaking in Dubai on 24 February after a joint news conference with Christine Lagarde, director of the International fund (IMF). VAT is predicted to be introduced at a rate of fifty with some limited exceptions including basic food items, healthcare, and education.

Vat Registration in the UAE

According to The UAE’s Federal Tax Authority, UAE companies operating in UAE must register for  Added Tax, to be able to claim VAT refunds on supplies from outside the UAE. Businesses that fail to satisfy the deadline will face late registration penalties.UAE companies now have but 45 days to arrange their financial, production, human, and technological resources for VAT.

The UAE is getting to implement on 1 January 2018 – other GCC countries may do so at an equivalent time or by 1 January 2019 at the newest. Background The GCC  States are within the process of approving the introduction of a worth Added Tax (VAT) system within the GCC. The common VAT framework will form the idea for the introduction of a national VAT system by each Member State.

While there are a variety of challenges that also got to be addressed before it’s introduced, VAT will help governments to deliver on long-standing plans for economic diversification faraway from oil, while still having the ability to deliver social and economic programs.

Do I want to register for Vat in the UAE

you want to register for VAT if the whole value of your taxable supplies and imports within the UAE exceeds the mandatory registration threshold of AED 375,000, A non-resident doing taxable business within the UAE must register for VAT regardless of the above-mentioned thresholds.

The exact details of the VAT regime which can get to begin within the common framework and national legislation are yet to be made available. , The establishment of clear regulations, and efficient administrative processes for VAT introduction. Businesses within the UAE (and GCC) should start planning now how the changes could impact their business, to make sure a smooth transition.

Businesses will need to adapt to the changes by identifying the impact of VAT registration in the UAE on their business, and key immediate considerations are to:

  • Assess the potential of existing systems
  • Identify VAT implementation strategy
  • Identify contracts that require a VAT action
  • Identify intercompany transactions
  • Undertake training/awareness

Documents Required for VAT Registration in the UAE

  A valid email id which shall be used because the login id for VAT registration and compliance purposes on the FTA website

  Are you registering as a Tax group or one company? (A Tax group are often formed once you’ve got two or more separate legal    entities; each of which must be resident within the UAE, that are associated and which meet specific control criteria).

  Copy of valid Trade License

  Certificate of Incorporation/ Registration Certificate (if applicable)

  Are you registering mandatorily (where turnover is kind of AED 375,000) or voluntarily (where turnover/expenses are kinds of AED    187,500)

 Primary checking account details including IBAN(This are becoming to be used for VAT refund purposes)

 List other business(es) of the directors/ partners in UAE within the last 5 years in conjunction with their Trade License copies (if   applicable)

provide services  VAT exempt like Financial services, Supply of residential buildings along with sale or lease, Supply of bare land& Supply of local passenger transport?

 Copy of audited/unaudited financials for the last 12 months

  Details Provide activities of the business 

   Expected revenue and expense for subsequent 30 days (an approximate number)

   Supporting documents for customs registration in each emirate

    The estimated value of imports for one year from GCC countries

    The estimated value of exports every year to each GCC countries

     Whether you expect to affect GCC suppliers or customers

    If you’re registered for VAT in any GCC member states and if doing business with any GCC country? (Country name, TRN,                 Estimated value of imports and exports (per year))

  Vat Registration within the UAE

  All business entities licensed by the numerous economic agencies just like the Department of Economic Development (DED), the free port Authorities are getting to be required to register and acquire a VAT registration number.

Existing Companies Sum of Turnover within the last 12 months 

Compulsory AED 375,000 and above

Voluntary Between AED 375,000 and 187,500

Not Required but AED 187,500

Excludes the price of Exempt invoices.

New Companies VAT purchase till date within the last 11 months and current month

Compulsory AED 375,000 and above

Vat Registration in the UAE

All business entities licensed by the varied economic agencies like the Department of Economic Development (DED), the free port Authorities are going to be required to register and acquire a VAT license number.

Existing Companies Sum of Turnover in the last 12 months 

Compulsory AED 375,000 and above

Voluntary Between AED 375,000 and 187,500

Not Required Less than AED 187,500

Excludes the worth of Exempt invoices.

New Companies VAT purchase till date in the last 11 months and current month

Compulsory AED 375,000 and above

VAT Groups

A group of companies may register under one VAT registration entity if they meet the eligibility requirements. Such a gaggle is taken under consideration together taxable entity and allowed to balance the decrease of member companies. Trade within group companies also doesn’t attract tax.

  Eligibility to form a VAT Group is yet to be announced but will presumably include common share-holders with majority stakes in each company. Watch this page for information on registration requirements and process once the govt. announces the portal and format for obtaining the VAT registration number.

A group of companies may register under one VAT registration entity if they meet the eligibility requirements. Such a gaggle is taken under consideration together taxable entity and allowed to balance the decrease of member companies. Trade within group companies also doesn’t attract tax.

Eligibility to form a VAT Group is yet to be announced but will presumably include common share-holders with majority stakes in each company.

Watch this page for information on registration requirements and process once the govt. announces the portal and format for obtaining the VAT registration number.

A group of companies may register under one VAT registration entity if they meet the eligibility requirements. Such a gaggle is taken under consideration together taxable entity and allowed to balance the decrease of member companies. Trade within group companies also doesn’t attract tax.

Eligibility to form a VAT Group is yet to be announced but will presumably include common share-holders with majority stakes in each company.

Watch this page for information on registration requirements and process once the govt. announces the portal and format for obtaining the VAT registration number.

A group of companies may register under one VAT registration entity if they meet the eligibility requirements. Such a gaggle is taken under consideration together taxable entity and allowed to balance the decrease of member companies. Trade within group companies also doesn’t attract tax.

Eligibility to form a VAT Group is yet to be announced but will presumably include common share-holders with majority stakes in each company.

Watch this page for information on registration requirements and process once the govt. announces the portal and format for obtaining the VAT registration number.

Contact us for your  VAT registration in the UAE :

We at BCM Corporate services LLC, extend our quality services to our client with good experienced & qualified Business consultants with rich expertise in Business Management services so that client’s requirements of VAT registration in the UAE.i can be completed on time with satisfactory Result outcome. Please feel free to reach us for your Business setup requirements on our email id: info@branches.ae or call us on +971502585921

 

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