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VAT Services


According to the UAE Government, VAT will apply to a majority of transactions in goods and services, with only a limited number of services and goods being exempt. To date, some of these exemptions have been named as being some real estate transactions, some transaction types related to sharing dealing, education and basic/preventative healthcare to name a few. This will require businesses of all sizes to maintain accurate financial records that enable them to inform the Federal Tax Authority of their company's financial position at any given time. Tax charged to customers for services rendered must be cited on invoices and collected and then repaid to the Federal Tax Authority.
For some businesses who are already maintaining their financial records and books at a high standard, this will be a minor consideration, for others, it will represent a paradigm shift in their internal accounting/bookkeeping practices. In addition to this, the accrual and management of VAT collected by companies and the legal framework surrounding claiming back VAT from the Federal Tax Authority will represent an operational and logistical challenge to all businesses. 
 
Registration Criteria:
 
 
(Mandatory registration) You will be required to be registered when the VAT law is in force if you are a business that is resident in the GCC and you are making supplies of goods or services in the UAE and either:
 
Your turnover was more than AED 375,000 in the last 12 months; or You expect that your turnover will be more than AED 375,000 in the next 30 days.(Voluntary registration) If you are not required to register, you will be eligible to apply for registration when the VAT law is in force if:
  
Either your turnover or expenses (which will be subject to VAT) were more than AED 187,500 in the last 12 months; or You expect that either your turnover or costs (which will be subject to VAT) will be more than AED 187,500 in the next 30 days.
  
Who is registered for VAT purposes
 
When you register for VAT, you are registering the person that is operating a business, not the business itself. A person can be an individual (i.e. operating as a sole trader), or a legal person (further defined in Section 4) or another form of entity (e.g. an unincorporated body such as a charity or club, a partnership or trust). A VAT registration covers ALL of the business activities undertaken by the registered person.
 
When you apply for VAT registration we will ask you for information relating to the person that is to be registered, and the current/intended business activities of that person.
 
Federal or Emirate Government bodies and other similar entities in the UAE are to be registered in the name of the relevant body, notwithstanding the fact that they might not be operating a business in the normal sense.
 
 
 
Your obligations at this time
 
The Federal Tax Authority (FTA) is inviting applications for VAT purposes (where the registration criteria set out below have been met) in the interim to help businesses operating in the UAE prepare in good time for the implementation of VAT on 1 January 2018.
 
Businesses with a turnover of over AED 150M should apply to register before 31 October 2017. Firms with a turnover of over AED 10M should apply to register before 30 November 2017. All other businesses need to have applied by 4 December 2017 to be registered by the start of 2018.
 
 
 
Documents and information mandated to register for VAT in the UAE:
 
Prior to applying for VAT Registration, organization’s are required to prepare the documents mentioned below. Soft copies of these documents should be uploaded along with the organization’s application.
 
 
Proof of identity of the authorized signatory, such as passport copy and Emirates ID
 
Copy of the company’s trade license
 
Other official documents authorizing the entity/individual to conduct activities within the UAE, e.g., articles of association, certificate of incorporation, power of attorney, etc.
 
Description of business activities
 
Turnover for the last 12 months in AED
 
Documents supporting the entity’s 12-month sales
 
Expected turnover in the coming 30 days
 
The estimated value of imports for one year from each GCC country
 
The estimated value of exports for one year to each GCC country
 
Anticipated deals with GCC suppliers and/or customers
 
Supporting documents for customs registration in each Emirate, if applicable
 
Bank account details
 




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