Every individual or UAE based Offshore company has to register itself with Federal Tax Authority and get the registration if it is crossing the threshold limit.
If a foreign entity is doing a local busiess & if there is no one to pay tax on Reverse charge machanism in UAE then a foreign entity is liable for VAT
registration.
Once a company cross taxable supplies USD 100,000 or AED 375,000/- in last 12 months or expected to cross in within next 30 days then it has to apply for VAT registration with in 20 wokring days. Further if a company is crosses taxable supplies more than USD 50,000/-or AED 187,500/- in past 12 months then it
can volunteerly apply for VAT registration.
Generally it took upto 21 working days once all documents is submitted to FTA.
IF company is not making any 5% taxle supply in the country then it can apply for VAT exemption. However getting the same is discretionary right of FTA.
If more than one company is under common control or owership then it can file the Tax group application.
Taxable supplies includes:- 1. imports into the country + 2. Export outside the country + 3. Local supplies with zero rated or 5%
In case of Delay for application of VAT registration AED 20,000/- is levied as fine by FTA.
company has to signup o FTA eservice portal & upload the requisite documents online for VAT application.
The company has to upload majorly Legal documents of the company, manager details, Bank details, total taxable supplies proof and any other documents which is asked by FTA during the process of registration.
Additional to the individual registration requirement, for Tax group application company need to assig group repersentative and upload group struture chart, Group revenue details and any other documents which is asked by FTA during the process of registration.
There is no fees is charged by FTA for VAT registrations
It has been made clear that the regime of Corporate Tax in UAE will follow best global practices and is expected to be implemented with easy corporate tax compliance requirements. The corporate tax rate in UAE is among the most competitive in the world and the lowest in the GCC – where Bahrain has now become the only country without a CT regime.
Corporate Tax will be levied at a headline rate of 9% on Taxable Income exceeding AED 375,000/-. The total taxable income will not be taxable at 9% and taxable Income below this threshold will be subject to a 0% rate of Corporate Tax.
In case of the qualified Freezone Person the threshold limit of AED 375,000/- is not been given for taxable income earned by Qualified Freezone Person. All taxable income which does not fall into category of Qualified income shall be taxed at 9% rate of Corporate Tax.
Calculation of corporate tax can be understood from the following scenarios: -
Scenario 1.
Accounting income of a taxable person is AED 600,000/- out of which AED 100,000/- is consist of exempt income. Corporate Tax would be calculated as follows: -
Filing a Vat return is a Online process. It has to be done at e-service portal of FTA.
A VAT return frequency can be Monthly, quarterly or Half Yearly. Normally VAT is giving quarterly return filing initially.
IF a company has a refund position in past 12 months then it can apply for change in frequency for VAT return filling or stagger.
No documents is require to upload at the time of submittin the VAT return, However the documents can be asked at later stage by the FTA.
due date for filing retunr & paying the VAT is 28th of the next month of quarter end / month end. In case 28th is holiday then next working day.
Yes, it is mandatory to maintain the books of accounts in the Accouting software. List for the same is available o FTA website.
A company has to mainntain books of accounts & documents for atleast 5 years.
Yes, e-documents is valid for maintaining records if authenticity for the same can be proved.
Vat amout can be paid by following methos :- 1. By credit card, debit card or edirham card in eserivce portal of FTA. 2. By bank transfer from the company bank account. 3. By depositig cash in exchange.
If a company is missed any information by which taxable amount changes by more than AED 10,000/- in the particular return then it should file a volunteer disclosure return.
First time delay in return filing is AED 1,000/- and subsequent return filing delay is AED 2,000/- per return.
Interest penalty for delay in payment of VAT is 2% for first 6 days then 4% till 28th of the next month and then 1% per day upto 300% of Vat amount involved.
First time wrong return submission fine is AED 3,000/- and subsequent wrong return filing is AED 5,000/- per return.
Refund can be applied after filling the return. It has to apply over eservice portal of FTA?
Yes, a Company ca apply N number of return's refund together.
A company need to fill the FTA questionnaire & submit the requisite documents as asked by the FTA from time to time during the process of Refund.
A company need to give the IBAN Letter from it bank in which it requisite the refund and submit it to FTA while applying for the refund.
A refund will be approved by the FTA within 20 working days once all the required documents are submitted to FTA.
Yes, if FTA deems fit, team can visit the office of the client.
VAT deregistration process is online. It can be filed at e-service portal of FTA.
a company need to deregister itself in following case 1. If a company is deregistered from relevant license issuing authority. 2. If it does not cross taxable
supplies of AED 187,500/- in past 12 months & will not cross it next 30 days.
A company need to upload the deregistration letter of the company from the relevant authority in case company is deregistered or a declaration for non taxable supply in future. Along with it FTA may request for Liquidation report, audit report or any other documents which it deems fit for issuing the VAT
deregistration.
A company need to file deregisteration request with in 20 working days from the date it require the deregisteration.
In case of Delay for application of VAT deregistration AED 10,000/- is levied as fine by FTA.
