UAE VAT Update

The BOTH Accounts team attended a VAT awareness workshop arranged by the Ministry of Finance.

Below are the major highlights covered during the session:

• Value Added Tax is an indirect Tax and is imposed on most supplies of goods and services that are bought and sold.
• Will be implemented on January 1, 2018 and Company registration will start in the 3rd quarter of 2017.
• Taxable Supplies and services will be charged a standard Rate at 5%
• Who are required to register for VAT
• Mandatory registration threshold AED 375,000 annual supplies
• Voluntary registration threshold at least AED 187,500
• It is expected that the default period for filing VAT returns will be three months for the majority of businesses
• Two or more persons carrying on a business are able to apply for a single ”Group” VAT registration
• Ministry of Finance will conduct specific industry seminars after Ramadan.

Please contact us for more information on VAT support administration and registration assistance.