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Federal Tax Authority - Registration Procedure for VAT

Abu Dhabi, November 29, 2017 – The Federal Tax Authority (FTA) has called on natural and legal persons exercising business in the UAE to expedite their registration process for Value Added Tax (VAT) to avoid the risk of missing the January 1, 2018, deadline
Mandatory Turnover for Registration: This applies to businesses whose taxable supplies and imports of goods and services exceed AED 375,000 over the previous 12 months. Taxable supplies are identified as all supplies of goods and services made by a Person that are not exempt.
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VAT DE-REGISTRATION

A registered taxable person is required to comply with the required rules and processes under VAT. Invoices have to be issued in the specified format, returns need to be filed on a timely basis and the tax due needs to be paid by the due date. The VAT Law provides registered taxable persons with the facility to cancel their VAT registration. Let us understand the circumstances in which a person can de-register under VAT and the process to be followed for the same.
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INPUT VAT RECOVERY

Input tax is the tax paid by a person on purchases or inward supplies. This means that a person can reduce the value of input tax eligible for recovery from the tax payable and only pay the balance amount as tax.
A registered business can recover the VAT paid on purchase of goods and services used for business purposes subject to following conditions according to Article number 55 of Executive Regulations.
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