VAT SERVICES by ALBAB BUSINESS SETUP SERVICE

Tax in the UAE: Everything you need to know about VAT and a little bit more.

REGISTRATION CRITIREA

A business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. Furthermore, a business may choose to register for VAT voluntarily if their supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED 187,500. Similarly, a business may register voluntarily if their expenses exceed the voluntary registration threshold. This latter opportunity to register voluntarily is designed to enable start-up businesses with no turnover to register for VAT.

VAT RETURN FILING PERIOD

The standard Vat return period is quarterly. However, the UAE FTA may consider monthly return periods for certain specific businesses to increase tax compliance and curb tax evasion by false means.

Return Filing Period

·         Quarterly Return

·         Monthly Return

VAT Return Filing Due Date Dubai

Registered Taxpayers must file their VAT Returns on or before the 28th of the subsequent month following the end of the tax period. For example, for the month of January 2018, the last date for filing VAT Returns will be 28th June 2018.

What is the Tax Procedures Law? Here are some key points:

- Take records: anyone conducting any business must keep accounting records and commercial books of their business.

- Penalties can and will be imposed: tax evasion, not paying tax or an unentitled refund of tax will be taken seriously. Expect a prison sentence and a monetary penalty not exceeding five times the amount of tax evaded.

Violations related to tax procedures

Federal Tax Authority (FTA) has approved the complete and final list of all the administrative VAT Fines and Penalties in UAE that will be imposed on businesses for violations of the VAT laws.Every VAT fine or penalty will be no less than AED 500

To be cont.….