Posted on Nov 07, 2017
Businesses in UAE will soon have to embed a new taxation system into their existing operational process, as Ministry of Finance, UAE has introduced new goods and service tax for businesses based inout of UAE. VAT registration required for UAE companies with revenues over Dh375,000, says Ministry of Finance, UAE.
The Ministry decided to implement VAT in different phases. In the first phase, The ministry announced that businesses that provide taxable goods or services, with annual revenue of more than Dh375,000 will be required to register. Businesses with taxable supplies below Dh375,000 but over Dh187,500 will have the option to register, it said.
The online registration for five percent of Value Added Tax (VAT) is now open for businesses and those organizations with an annual turnover of more than Dh375,000 should apply for registration on or before December 4, 2017, the UAE Federal Tax Authority (FTA) said.
The Ministry has urged all businesses to adhere to a timeline for registration. Those with an annual turnover exceeding Dh150 million should register before October 31, 2017, and those with an annual turnover exceeding Dh10 million should register before November 30, 2017.
A representative in the form of a manager can represent companies in all aspects of tax matters. His personal details such as passport copy, Emirates ID and contact details are to be provided in the application and uploaded to the platform online.
In certain cases where more than a single company is being managed by the similar management and there are proofs indicating the connection between those firms, those companies can choose the tax group registration option and transactions within the group companies will be exempted from tax.