VAT Registration

VAT Registration Threshold

Who is a Taxable person under GCC VAT Agreement?

A Taxable Person means any person who is conducting an economic activity for the purpose of generating Income.

Registration for VAT

A taxable person as per the UAE VAT law can register in the third quarter of the year 2017. It is compulsory to get registered by every taxable person under the VAT registration platform before the end of the year 2017.

What is Tax Group / VAT Group?

A Member State may allow two or more persons that are residents of the same member state to register for VAT as a Tax Group. Such a group will be treated as a single taxable person for compliance of UAE VAT law. Entities can register as a VAT Group if:

All the Entities within one VAT Group are treated as one entity for the UAE VAT purpose. Supplies made between the members of a VAT Group will not be considered as a transaction under UAE VAT. Moreover, one entity cannot be part of more than one VAT group.

Record Keeping

It is compulsory for every taxable person to maintain books of accounts under UAE VAT law. In addition to that, the authorities can ask for additional documents such as, annual accounts, general ledger, purchase day book, invoices issued, invoices received, credit notes, debit notes, VAT Ledger etc.Under the UAE VAT law the books of accounts and records are to be maintained for a period of five years.

What Next?

If you’re looking for an expert advice on your Accounting, Auditing, VAT Registration & Training needs then please feel free to call on +971 42408885 .