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VAT Registration in UAE

The following business are the ones who should and can apply for VAT in UAE registration on or before 4 December 2017, as per the Federal Tax Authority (FTA)

  • Annual turnover is between AED 187,500 and AED 375,000 (optional registration)
  • Annual turnover is less than AED 187,500 (registration not required)

The deadlines for registration are as follows:

  • The deadline for businesses with annual turnover of AED 150 million is on Oct 31, 2017.
  • The deadline for businesses with annual turnover of AED 10 million is on Nov 30, 2017.
  • The deadline for businesses with annual turnover of AED 375,000 is on Dec 04, 2017.

There are a couple of listed violations and respective penalties that were released in the provisions of Cabinet Decision No. 40 on Administrative Penalties for Violations of Tax Laws in the UAE that is adopted by the UAE Council of Ministers. Every single violation against the Federal Law No. 7 of 2017 on Tax Procedures, Federal Decree-Law No. 7 of 2017 on Excise Tax, and Federal Decree-Law No. 8 of 2017 on Value-Added Tax (VAT) shall be fined in accordance with the provisions in the Cabinet Decision No. 40.

In order to avoid being penalized, it is better to follow the laws laid down by the FTA and the government.

The VAT registration in UAE can fall into two categories as below:

A) Mandatory Registration
Any business is required to register if they fall into the following classifications:

  • For over the 12-month period, the taxable supplies of the business go beyond the mandatory registration threshold, or
  • The business expects to make taxable supplies in the next 30 days that will have a value that is more than the mandatory registration threshold, or
  • The amount of mandatory registration threshold is AED 375,000.

B) Voluntary Registration
Any business that doesn’t meet the mandatory registration criteria and falls into the following classifications may opt for a voluntary registration:
  • In the previous 12-month period, their taxable supplies or taxable expenditures are worth more than the voluntary registration threshold, or
  • The business expects for their taxable supplies or taxable expenditure for the next 30 days to be worth more than the voluntary registration threshold, or
  • The amount for the voluntary registration threshold is AED 187,500.

  
 
     
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