Media ININ Economy We Trust
Media In – Abu Dhabi 8 April
The Federal Tax Authority has stressed that all those involved in implementing the VAT system should be fully informed of a set of essential information about registration for VAT.
Khalid Ali al-Bustani, Director General of the Federal Tax Authority, called on the business sectors to identify this information, which was determined according to the data of the first period of application of the value added tax, which came into effect from the beginning of January to ensure close level of commitment and interaction from the business sectors And the ease of procedures for all companies to ensure that their activities are not affected if the standards specified in the tax laws are strictly observed.
“This continuous follow-up is a commitment by the TRA to adopt the highest standards of transparency and accuracy, to the ideal application of tax systems locally and to avoid misconceptions that can lead to the spread of certain phenomena that may have a negative impact on some,” he said.
The Commission clarified that among the necessary information required to be accurately identified are 7 essential facts to ensure a perfect application of VAT system including:
1- Businesses whose supplies are less than AED 375,000 are not required to register for tax.
Businesses must register if their taxable supplies exceed the mandatory registration limit of AED 375,000 during the previous 12 months.
2. Natural persons shall be taxed if their supplies exceed the mandatory limit.
Any natural or legal person engaged in business shall register for VAT if his taxable contributions exceed the mandatory registration limit of AED 375,000 in the preceding 12 months or are expected to exceed this limit within the next 30 days. Payable.
3. The tax number is sufficient to carry out all commercial activities.
Submitting a tax registration number is sufficient to carry out any business or other economic activity.
4. Registration continues without interruption.
Registration for VAT is continuous for both new and non-taxable businesses by reaching the mandatory registration or late registration threshold for which the legal process is applied upon registration.
5- Computation of the mandatory limit according to the revenues.
The mandatory registration limit shall be calculated on the basis of total business income relating to taxable supplies carried out by any person, and no express provision for exemption has been issued in addition to the person’s importation of goods and services and not on the basis of profits.
6- Exemption from the delay fine only by the end of April.
The Commission’s decision to exempt the late business sectors from the VAT registration procedures relates to the exemption from administrative fines resulting from delays in registration only until the end of April 2018. The taxes due on taxable persons from the beginning of the application at the beginning of this year must be paid in full retroactively.
7. Unregistered businesses are not entitled to a tax
Unregistered businesses are not entitled to impose a tax on their customers and therefore can not issue tax invoices while these businesses will have to pay the import tax before the party completes clearance procedures for the goods from customs outlets. The violating party will be required to pay an administrative fine of 20 thousand AED for delay in applying for registration.
