Online registration for Value Added Tax (VAT) is now open in the UAE ahead of the tax’s introduction in January 1, 2018, according to the UAE Federal Tax Authority (FTA).
Accessible through the FTA’s website, the service will facilitate registration procedures for business which are subject to the tax in accordance to international standards, including companies that have taxable supplies and imports surpassing the mandatory registration threshold of AED375,000 a year.
Businesses with taxable supplies and imports from abroad that are below the mandatory registration threshold and exceed the voluntary registration limit (AED187,500 annually) can optionally register for VAT.
Start-up business that do not have high income and surpass the voluntary registration threshold can optionally register.
FTA has urged businesses with an annual turnover exceeding AED150m to register before 31 October 2017, while businesses with an annual turnover exceeding AED10m are required to register before 30 November 2017.
All businesses, however, must be registered by 1 January 2018 and should submit their registration applications before 4 December 2017.
Khalid Al Bustani, the FTA's director general, said: “This is part of our commitment to enhancing the readiness of different businesses and raising their preparedness for the easy application of the distinct tax system that is consistent with global best practices and embodies the leading position of the UAE at all levels. The Federal Tax Authority is keen to give the business sectors sufficient time to adapt their operating systems to the requirements of the VAT system.
“The registration portal is available to all businesses around the clock to assure the ease and usefulness of the registration procedures to all businesses from all sectors through the website. The website has been specially designed to meet international standards and to provide guidance to registrars on the completion of their applications.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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