Companies in Dubai to Register for VAT Before the End of the Year

Updated on Tuesday 12th December 2017

With only less time until the VAT (Value Added Tax) will be imposed in the UAE, the financial authorities and particularly the Federal Tax Authority have made an announcement through which they solicit enterprises, local and foreign ones, to align with the requirements for the new tax in January 2018. The same entities mentioned that companies which do not register for VAT by the end of 2017 will support fines. With a wide experience in accounting services, and knowing the tax regime in the UAE, our team of accountants in Dubai can help entrepreneurs ease the process of registering for VAT.
 

Countries to respect the new taxation system in 2018


After long debates, the decision of imposing the VAT, in accordance with the agreements of the International Monetary Fund (IMF), will be met in only two states part of the GCC (Gulf Cooperation Council), and those are the United Arab Emirates and Saudi Arabia. The tax rate for VAT is set at 5%, one of the lowest in the world, and will be added only to certain products and services. For instance, the imports, and the non-essential consumer items (jewelry, electronics, cars) will be levied with this tax in less than a month. The basic food, the clothes, the medicines, and the healthcare services are exempt from taxation. We remind that an excise tax of 50% of the price has been added to the unhealthy foods and beverages, in October 2017. The implementation of VAT for the specific products must be considered immediately, as companies need to prepare from a legal point of view. 

Our Dubai accountants are at your disposal with related services which are necessary when running a business. Also, audits in Dubai must be considered for your business, whether large or small.
 

How is the VAT registration made in the UAE?



With less time until two of the GCC states will implement the Value Added Tax for the first time, the financial authorities in the UAE, and especially the Federal Tax Authority have advised companies to register in this matter. An application for the Tax Registration Number (TRN) is mandatory for companies having activities in imports or offering taxable goods. The registration for VAT is a simple procedure, as the authorities mention, and can be done on the official website of the financial authority.

In order to be prepared for the implementation of VAT in Dubai, complete guidance and support can be offered by our accounting firm in Dubai. Also, you may request accounting services for your business in Dubai, so please feel free to contact us.

 

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