VAT for Dubai Registered Companies
If you’re currently in the process of setting up your own business either as a start-up or small business, then it is vital that amongst all other processes including registration, scouting out an office and hiring employees, you also implement the right tax protocols along the way. This primarily begins with maintain accurate business transaction records via bookkeeping, and as such requires hiring professional bookkeeping services. Failure to comply will, as of new laws implemented, result in a 10,000 AED fine. Our VAT registration company dubai can help with this, as well as the execution of all VAT-related needs.
Prior to the introduction of VAT within the UAE, businesses were typically categorised into two:
– Non-free zone companies
– Free-zone companies
Currently, registered businesses in Dubai who engage in property import and export, that is to say sourcing goods and services for the purpose of re-sale within the UAE, are subject to a 5% VAT charge excluding exempted items of course, whilst also incurring an additional 5% charge when purchasing goods and services from local companies in the UAE. For companies who are concerned with only exporting goods and services outside the GCC, there’s no VAT charge whatsoever. Free zone companies are also required to register for VAT in order to avoid facing a penalty, the deadline of which was January 01st 2018. If you missed the due date and would like specific advice and guidance for your own business, contact us at Sarah Ferguson, your premier tax consultant dubai. However, if your company is a newly-registered free-zone company, you don’t have to register for VAT unless you earn Dh375,000 and above within the next 30 days.
All fines imposed on businesses that have failed to register will be assessed under the Administrative Penalties stipulated in Cabinet Decision No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE. Other companies that are also required to register include DMCC companies who offer services internationally based within the UAE. So if for example you offer a brokerage service to non-UAE suppliers and importers, you’d be liable for VAT.
Also serving as a UK tax consultancy in dubai, we at Sarah Ferguson are well equipped to assist you every step of the way. Do contact us for personalised direction.