UAE set to implement Value Added Tax (VAT) from 1 January 2018

The UAE is set to implement a Value Added Tax (VAT) from 1 January 2018. If the taxable supplies and imports of a business for the last 12 months or the anticipated taxable supplies and imports for next 30 days exceeds AED375,000, it is obliged to register for VAT. The VAT registration portal is now open and the deadline for VAT registration has been set as below:

• 31 October 2017 – Companies with taxable supplies and imports above AED150 million
• 30 November 2017 – Companies with taxable supplies and imports above AED10 million
• 4 December 2017 – Companies with taxable supplies and imports higher than AED375,000.

Before proceeding with VAT registration, it is essential that the business identifies whether its supplies are taxable, exempted or out of scope for VAT purposes. This will depend upon the category of goods or services supplied and whether these supplies are being made within the UAE, the GCC or outside the GCC. The amount of goods or services currently imported will also have to be considered. All of these factors will determine the need for VAT registration.

Businesses also have the option of voluntary registration if their taxable supplies and imports or taxable expenses exceed a threshold of AED187,500. There are a number of documents that will be required for the registration process.

Sovereign has a team of in-house qualified accountants and tax advisors, which can assist you with every step of the VAT registration process. We can also provide full assistance with VAT implementation for your business and undertake regular VAT returns and filing as per the VAT executive regulations.

Please download our VAT guide here

If you are interested in any of our VAT-related services or need any further information, please contact us.