The FTA hasn’t yet published the VAT Executive Regulations and treatment of Free Zones isn’t clear yet.
However, based on the mandatory and voluntary registration requirements published by the FTA previously, all entities having a taxable supply exceeding AED 375,000 are required to register for VAT, and those with taxable supply between AED 187,500 and AED 375,000 may opt to register for VAT.
For VAT registration, the Ministry of Finance has already issued the following deadlines:
○ Before 31 October 2017 – Businesses with a turnover exceeding AED 150m should apply for registration
○ Before 30 November 2017 – Businesses with a turnover exceeding AED 10m should apply for registration
○ Before 04 December 2017 – All other business entities should submit their application to minimize the risk of not being registered in time for VAT go-live
You need to be registered in order to refund any VAT you pay as a business, and time is running out! Begin preparing for VAT and start your registration here.
Aside from registering and becoming ready to collect VAT, Companies must adjust their financials, processes, and systems to be fully ready. Contact our tax advisors on [email protected] to seek advice specific to your business.
You can learn more about VAT here.
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