While it’s still early days to be sure of the compliance standards related to VAT in UAE, there are some compliance guidelines that you ought to know. In this section, you can get information related to VAT exemptions, threshold limit etc. For information related to VAT registration, click on VAT registration in services.
i. Who will have to register?
Any company or businesses which provide taxable goods or services with annual revenue of more than Dh375, 000 are required to register for it. Those with taxable supplies below Dh375, 000 but over Dh187, 500 will have the option to register for it.
ii. Who will be taxed?
Companies with annual revenue above Dh375, 000. Two, all sales of commercial property by VAT payers will attract VAT. Three, commercial tenants can expect to pay taxes.
iii. Are there any exemptions?
Yes. One, Companies that provide health and education services. Two, property developers and first sale of new homes will not be taxed. Three, Residential tenants’ leases is tax free. These entities can claim back any VAT they have paid to the government.
iv. How often do business-owners have to file VAT returns?
For most businesses, every three months and it can be done online.
v. What about importers and re-exporters?
If goods are imported into the UAE, and set for re-exportation (with paperwork to prove), it will not attract VAT in UAE, only custom duties. In case the destination of goods coming in UAE is uncertain, they will attract VAT in UAE.
It is mandatory to maintain books of account under UAE VAT law. Authorities can also ask for other supportive documents like invoices, general ledger etc. If you are finding it difficult to maintain them all by yourself, contact us.