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Registration and deregistration for VAT

Mandatory Registration
1.
The Mandatory Registration Threshold shall be AED 375,000 (three hundred and seventy-five thousand dirhams).

2.
The Person required to register for Tax pursuant to the provisions of the Decree-Law must file a Tax Registration application with the Authority within (30) days of being required to register.

3.
Where a Person does not file his Tax Registration application despite being required to, the Authority shall register that Person with effect from the date on which the Person first became liable to be registered for Tax and impose the necessary penalties in accordance with the Federal Law No. (7) of 2017 on Tax Procedures.

4.
Where supplies made by a Person exceed, in accordance with the Decree-Law, the Mandatory Registration Threshold during the previous 12-months period, the Authority shall register the Person with effect from the first day of the month following the month in which the Person is required to register, whether or not he applies for Tax registration, or from such earlier date as agreed between the Authority and the Person.

5.
Where a Person expects that his supplies, in accordance with the Decree-Law, will exceed the Mandatory Registration Threshold during the next (30) days, the Authority shall register him with effect from the date on which there are reasonable grounds for believing the Person will be required to register as specified in that Clause, whether or not he so notifies them of the liability to register for Tax, or from such earlier date as agreed between the Authority and the Person.

6.
Where a Person is not a resident of the State and is required to register in accordance with the provisions of the Decree-Law, the Authority shall register him with effect from the date on which he started making supplies in the State, whether or not he so notifies them of the liability to register for Tax, or from such earlier date as agreed between the Authority and the Person.

7.
A Taxable Person who has been late in registering for Tax according to the provisions of this Article is liable to account for and pay to the Authority the Due Tax on all Taxable Supplies and Imports made by him before registering.

Voluntary Registration
1.
The Voluntary Registration Threshold shall be AED 187,500 (one hundred eighty-seven thousand five hundred dirhams).

2.
Where a Person applied to register voluntarily in accordance with the provisions of the Decree-Law, the Authority shall register a Person with effect from the first day of the month following the month in which the application is made, or from such earlier date as may be requested by the Person and agreed by the Authority.

3.
Where a Person applied to register voluntarily due to his expectation that his supplies under the provisions of the Decree-Law will exceed the Voluntary Registration Threshold during the next 30 days, he should be able to provide evidence of an intention to make Taxable Supplies or incur expenses which are subject to Tax in excess of the Voluntary Registration Threshold.

4.
The Authority shall determine the evidence it may deem necessary to demonstrate eligibility for voluntary Tax Registration.

5.
For the purpose of voluntary registration, the phrase “Taxable Expenses” means expenses which are subject to the standard rate and which are incurred in the State by a Person who has a Place of Residence in the State.

6.
A Person may not register voluntarily unless he satisfies the Authority that he is carrying on a Business in the State.

De-registering from VAT
1.
In case the Taxable Person cease making taxable supplies or are still making taxable supplies but the value in the preceding 12 calendar months is less than the Voluntary Registration Threshold which is 187,500 AED, must apply for De-registration within 20 business days from the occurrence of the event.

2. if the date of submission of this De-registration form is more than 20 business days from the date the Taxable Person is required to De-register then Taxable Person will be subject to a late De-registration penalty of AED 10,000.

Registration and deregistration for VAT