VAT in the UAE from 1st January 2018
Registrations for Value Added Tax in the UAE are now under way and registrations are now taking place to be ready for its commencement on 1st January 2018.
The threshold for mandatory registration is AED 375,000 and if your business is generating revenue of AED 375,000 from taxable supplies or goods in the last 12 months or expected next 12 months, then it is mandatory that you are registered.
If your business falls into an annual amount of generated revenue of AED 187,500 then it is a voluntary application.
There is still no clarity regarding Freezone companies until further announcements are made. In the meantime if you have any doubts whatsoever, then it will be better to register.
Deadlines for registering are:
- 31st October 2017 if your turnover is above AED 50 million
- 30 November 2017 if your turnover is above AED 10 million
- 4 December 2017 for all other businesses
You can register through the Ministry of Finance Website (Federal Tax Authority)
If you need any advice on the new VAT rules, please contact us at RedSeal and we are able to recommend simple accounting programmes and a reasonable good company to use for this purpose if necessary.