Compliance requirements under VAT

VAT Registration Threshold.

On the off chance that the Annual Turnover of the organization is more than AED 375,000/, it is obligatory for the organization to enroll under UAE VAT before the finish of the year 2017.

On the off chance that the Annual Turnover is between AED 187,500 and AED 375,000/, it is discretionary for the organization to be enrolled under UAE VAT law. Further, on the off chance that it is not as much as AED 187,500/, the organization require not enroll under this law.

For the new businesses, if the VAT pulled in costs are more than AED 187,500/, (USD 50K) such organizations must be enlisted under the UAE VAT law.

The limit said above will be computed as takes after:

 The aggregate estimation of provisions made by an assessable individual for the month in which he is applying for VAT enlistment and the past eleven months.

 The aggregate estimation of provisions of the consequent 30 days on which he is applying for VAT enlistment.

On the off chance that in any of the over two alternatives, the turnover is more than AED 375,000/ – the organization needs to enroll for VAT.

For arriving the turnover for VAT enrollment reason, estimation of exempted supply won’t be considered.

Who is a Taxable individual under GCC VAT Agreement?

Assessable Person implies any individual who is directing a financial movement to generate Income.

• Such individual is enlisted or obliged to enlist for VAT according to the enrollment limit in a part state.

• Taxable individual can incorporate organizations situated outside the GCC domain.

• Taxable individual can be any distinct individual directing a financial action.

Enrollment for VAT

An assessable individual according to the UAE VAT law can enroll in the second from last quarter of the year 2017. It is compulsory to get enlisted by each assessable individual under the VAT enrollment stage before the finish of the year 2017.

What is Tax Group/VAT Group?

Part State may permit at least 2 people that are inhabitants of a similar part state to enroll for VAT as a Tax Group. Such gathering will be dealt with as a solitary assessable individual for consistence of UAE VAT law. Substances can enlist as VAT Group if:

• Each individual has a position of foundation or a settled foundation in the UAE.

• The people are “connected gatherings” and

• Either one individual controls others, or at least two people from the organization control the others

Elements inside one VAT Group are dealt with as one substance for the UAE VAT reason.

Supplies made between individuals from a VAT Group won’t be considered as an exchange under UAE VAT. Further, one element can’t be a piece of more than one VAT gathering.

Record Keeping

It is required for each assessable individual to keep up books of records under UAE VAT law. Notwithstanding that the expert can request extra archives, for example, yearly records, general record, buy day book, solicitations issued, solicitations got, credit notes, charge notes, VAT Ledger and so forth.

Under the UAE VAT law the books of records and records are to be kept up for a long time.