by United VAT
Posted on Oct 11, 2017
Businesses with an annual turnover of more than AED 375,000 should apply for registration on or before December 4, 2017, the UAE Federal Tax Authority said.
Oct 31, 2017 is a deadline for businesses with Annual turnover of Dh150 million.
Nov 30, 2017 is a deadline for businesses with Annual turnover of Dh10 million but less than Dh150 million.
Dec 04, 2017 is a deadline for businesses with Annual turnover of more than Dh375,000 million.
The clock is continuously ticking as the online registration window for 5% Value Added Tax registration has been opened form 1st October 2017 and will remain open until 4 December 2017. All the business units with an annual turnover of more than Dh375,000 are required to apply for the same. An official website has been designed to provide the complete guide to the taxpayer for completion of their application.
It is recommended that all the business units whose annual turnover exceeds Dh 150 million should register themselves by 31st October 2017 and those with an annual turnover exceeding Dh 10 million are required to register before 30 November 2017.
Khalid Al Bastani director general of the FTA said that the FTA authority is working towards making the all the businesses VAT ready. Further, the aim of the authority is to give the sufficient time to all the business sectors to equip their systems to the requirements of VAT system.
FTA also conveyed that all the business units that are undertaking taxable supplies and imports from abroad which do not exceed the mandatory threshold limit for registration but is more than the voluntary registration limit of Dh 187500 annually have an option of registering under the VAT regime. This opportunity is given in order to provide an option to the startup business that does not have the required income to register under the new regime of the VAT.
In addition to this, it is said that the maximum time limit of registration does not stop anybody to obtain registration before the proposed due date like the business units having less than Dh 10 million annual turnover can apply for registration now.
Nair the CEO of Emirates charted group said that in case if the turnover of a business unit in last 12 months is less than the mandatory threshold limit of Dh 375,000 but it is expected that within coming 30 days the turnover will exceed the threshold limit are required to obtain registration. Also, the proof of the annual turnover of such financial statement is required to be uploaded in the application filed.
Further, Nair added that all the companies are empowered to appoint a manager who will represent them in all the matters of the tax. The personal details of such managers like his emirates Id, passport copy and contact details are required to be mentioned in the application submitted. The details of any partner/director of the company who is the partner in any other company in UAE either now or in last five years the name of such companies shall be provided in the registration application.One interesting option of registering as a tax group is also provided to the companies. This option can be exercised when more than one company is managed by the same management and the proof of the relationship among the companies subsists. Due to this, the transactions between the group companies will no longer be taxable. To register as a tax group it is crucial to choose a prospective representative member of the tax group. As soon the registration application is submitted a tax identification number is generated and the TRN number will be issued in case of a tax group. The name of the company and the manager shall be filed in Arabic in the application. Also, the applicant is required to fill the name of the bank, branch and the IBAN of the UAE bank in which it operates.
According to the tax experts in UAE 5% VAT will not be levied on amount withdrawn from ATMs of banks other than their own bank - but only on the Dh2 fee will be charged by the banks.
Declining the news of the delay in implementation of VAT in UAE Khalid Ali Al Bustani, director general of the Federal Tax Authority, says VAT will start as planned on Jan 1 2018.
Executive Regulations for the Federal Decree-Law No. (8) of 2017 on Value Added Tax, VAT were signed and approved by the Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE.