Online Registration For Value Added Tax (VAT) Is Open
The UAE Federal Tax Authority (FTA) announced that online registration for the Value Added Tax (VAT) is now open, through its website, as part of the Authority's preparations for the 5% VAT, set to be introduced from January 1, 2018.
This is part of the commitment of the Authority to facilitate the registration procedures for all businesses from all sectors that are subject to VAT, in accordance with the highest international standards. The registration portal is available 24/7 to ensure business-readiness by aligning organisations' financial and technical systems to comply with the regulations and procedures.
Businesses must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 per year.
Businesses with taxable supplies and imports from abroad that are less than the mandatory registration threshold and exceeds the voluntary registration limit AED 187,500 annually can optionally register for VAT. Businesses with expenses that exceed the voluntary registration threshold can also register. This opportunity enables start-up businesses that do not have the required income to optionally register for VAT.
FTA has urged all businesses to adhere to the following timeline: All businesses with an annual turnover exceeding AED 150m should register before 31 October 2017. All businesses with an annual turnover exceeding AED 10m should register before 30 November 2017.
All businesses that must be registered by 1 January 2018 should submit their registration applications before 4 December 2017 to minimize the risk of not being registered in time for the beginning of 2018.
Khalid Al Bustani, the FTA's director general, said: "This is part of our commitment to enhancing the readiness of different businesses and raising their preparedness for the easy application of the distinct tax system that is consistent with global best practices and embodies the leading position of the UAE at all levels. The Federal Tax Authority is keen to give the business sectors sufficient time to adapt their operating systems to the requirements of the VAT system.
"The registration portal is available to all businesses around the clock to assure the ease and usefulness of the registration procedures to all businesses from all sectors through the website. The website has been specially designed to meet international standards and to provide guidance to registrars on the completion of their applications."
The Federal Tax Authority has urged all businesses to learn and understand the implications of the VAT system and to align their work with the reporting and compliance requirements by the Government. Businesses are asked to ensure that they meet the conditions that allow them to uphold their obligations, which might call for making some changes to their core operations, financial management, their accounting methods and approach to handling the accounting records, technologies used, as well as changes in human resources, including accountants and tax consultants.
For more information about VAT, please visit: www.tax.gov.ae
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