35 business days left to register for VAT in UAE

Businesses across the UAE should register for value-added tax as only 35 business days are left to implement the new levy, set to come into force on January 1, 2018.
Click here for complete coverage on VAT in UAE

Khalid Al Bustani, director-general of the FTA, said businesses have been given considerable time to be ready for VAT and fulfill their registration requirements.

"The businesses now have only 35 business days to complete their registration, ensure their financial and technical compliance with the tax system and avoid late registration fines," Bustani said at a media roundtable in Dubai on Wednesday.
No VAT on sale, purchase of shares

The online registration for 5 per cent VAT began last month and businesses with an annual turnover of more than Dh375,000 should apply for registration on or before December 4, 2017. The FTA registration portal is available to all businesses around the clock.

The agency has urged all businesses to adhere to a timeline for registration. Those with an annual turnover exceeding Dh150 million should register before October 31, 2017, and those with an annual turnover exceeding Dh10 million should register before November 30, 2017.

All businesses that must be registered by January 1, 2018, should submit their applications before December 4, 2017, to minimise the risk of not being registered in time for the beginning of 2018.

"The FTA is tasked with providing an outstanding tax system that adhere to best international practices," Bustani said.

The FTA said businesses with taxable supplies and imports from abroad that are less than the mandatory registration threshold and exceed the voluntary registration limit of Dh187,500 annually can optionally register for VAT.
Executive regulations

In another development, the UAE Ministry of Finance has announced the executive regulation for the Federal Decree-Law No. (8) of 2017 on VAT at a Cabinet meeting on Tuesday.

The regulation defines VAT as the 5 per cent tax imposed on the import and supply of goods and services at each stage of production and distribution, including what is a deemed supply, with the exception of specific supplies subject to the zero rate and what is exempted as specified in the decree-law.

Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, said the release of the Executive Regulation of Federal Law No. (8) of 2017 on VAT is a new stage in the implementation of an effective tax system in the UAE -- one that measures up to the highest international standards.

"We extend our hand in partnership to all concerned parties, inviting them to work together for the advancement, progress and prosperity of the UAE."

business@khaleejtimes.com