By Staff writer
Companies that have an annual turnover of more than AED375,000 will have to register
The UAE’s Ministry of Finance has established the minimum threshold for companies that have to register for VAT ahead of its implementation on January 1, 2018.
In a series of tweets, the ministry outlined the initial details of the new taxation system that will see five percent charged on supplies of goods and services, “unless specifically exempted or zero-rated”, it said. Last week, the UAE’s Federal National Council approved the draft for VAT.
Companies that have an annual turnover of more than AED375,000 ($102,000) will have to register for VAT ahead of its implementation, the ministry said.
Firms who have “taxable supplies below AED375,000 but over AED187,500 will have option to register”, the ministry said.
The ministry held its first awareness and education workshops this week, which are aimed at preparing businesses for the new taxation system.
The first workshop targeted multipliers – government entities, such as chambers of commerce and departments of economic development, and the consultancies and attracted more than 500 attendees.
“These workshops also serve to underline the importance of the new tax system as a necessary step towards securing a sustainable future for the UAE, while making sure businesses are fully prepared to file their tax returns and adapt to the new tax law,” said Younis Haji Al Khoori, Under-Secretary of the Ministry of Finance.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.