Home Finance Know about the Regulations concerning VAT in UAE

Know about the Regulations concerning VAT in UAE

252
0
The Vat Consultant

On January 1, 2018, the United Arab Emirates (UAE) introduced value added tax (VAT). In accordance with the legislation on value-added tax, enterprises and individuals with a turnover of over 375,000 dirham’s during the previous 12 months must get vat registration with the Federal Tax Authority. The law also provides for voluntary vat registration online for businesses with a total turnover of 187,500 dirham’s.

Members of the Cooperation Council for the Gulf States signed the Uniform Framework Agreements to introduce VAT and excise taxes. Member states will also implement their own domestic legislation that will govern the imposition of these vat registration dubai.

Consistent with this unified structure, the UAE has implemented VAT under Federal Decree No. 8 of 2017 on Value Added Tax (VAT) and the Executive Regulation to Federal Law No. 8.

WHAT IS UAE VAT?

Value-added tax or VAT is a tax on the consumption or use of goods and services that is levied as they are sold. VAT is a form of indirect tax that is applied in over 150 countries around the world. All countries have VAT (or something similar). Although VAT is similar to the general sales tax levied on end-users, it is still more sophisticated and includes the many nuances that arise in the case of a general sales tax.

VAT is levied at every stage of the production and distribution chain, where end-users pay the value of the VAT and specialized organizations collect on behalf of the Federal Tax Authority.

UAE vat registration is an online process that the applicant must complete on the website of the Federal Tax Authority (FTA). Businesses must get online registration for vat on the site and fill out a vat registration form uae.

Regulations concerning VAT in UAE

Let’s know about vat in uae registration.

Companies whose taxable income is less than AED 375,000 per year but above AED 187,500 per year can choose whether they want to get vat registration dubai to file a tax return or not. If the declaration is not submitted, then such companies also cannot receive a refund for paid VAT.

IMPORTANT – to avoid penalties, vat registration/receipt of a VAT number for ALL ONSHORE COMPANIES must be completed by the end of 2017.

A list of new tax rules is available on the Internet at the website of the UAE Ministry of Finance. In the procedure for online registration for vat, a VAT number is not particularly complicated. A company applying for vat registration uae for VAT purposes will be provided with an 11-digit VAT number. In the UAE, 5% VAT rate is charged. All issues related to VAT are regulated by the Federal Tax Authority. He is responsible for considering a fairly wide range of issues, including those related to the introduction, collection, and management of VAT procedures.

The services of the UAE Federal Tax Service (FTS) are provided online and are available 24 hours a day. This contributes to the ease of doing business in the UAE. The FTS website is user-friendly and has been designed in accordance with international standards. Employees working for the Federal Tax Service will provide assistance and support to everyone who needs them.

LEAVE A REPLY

Please enter your comment!
Please enter your name here