Vat Compliance Requirements
VAT Registration DatesVAT Registration Opened | 1st October 2017
Registration Deadline 31 October 2017
Companies/ business having an Annual Turnover of more than AED 150 million
Registration Deadline 30 November 2017
Companies/ business having an Annual Turnover of more than AED 10 million
Registration Deadline 04 December 2017
All other companies/ organizations who exceed the minimum threshold which is AED375,000.
VAT PercentageStandard Rated – 5%
Zero Rated 0%
VAT RegistrationMandatory Registration - Annual Turnover of more than AED375,000
Optional Registration - Annual Turnover 187,500 to 375,000
Registration Not Required – Annual Turnover below AED 187,500
Is exempted supply part of turnover while registration?
The value of exempted supply will not be considered.
Who is Taxable person under GCC VATA person (taxable person) who who carries out economic activities to generate income.
The Taxable person will have to register for VAT as per registration threshold
Taxable many and may not be outside the GCC territory
Tax group / VAT groupIf 2 or more persons residents of the same member state are registering as tax group. Such group will be treated as one entity for VAT Compliance.
VAT Group will be registered as entities, if: - The persons are “related parties”
- Each of the taxable person has a place of establishment in United Arab Emirates or a fixed establishment
- Either one person controls others, or two or more persons from the partnership control the others
- Entities within 1 VAT Group will be treated as one entity for the VAT purpose. It is pertinent to mention here that 1 entity cannot and will not be part of more than one VAT group.
RECORD KEEPINGRecord keeping is mandatory for every taxable person under UAE VAT law. Records includes but not limited to ledgers, journals, vouchers, bills, purchase book, sales details, invoices, credit notes, debit notes, VAT ledgers. In addition the federal tax authority can also ask for additional documents, as and when necessary.
- Proper books of accounts and financial records (invoices, vouchers, bills, agreements)
- Books of accounts to be maintained for 5 years
- VAT related record, Invoices, Bills should be maintained with serial numbers
As per UAE VAT Law the books of accounts should be maintained for 5 years.
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