What happens if you don't register for VAT in Dubai?

[Cristero]

If you have a freezone company - you are resident
You have residency visa and emirates ID.
I guess you meant if you're not UAE national.

If you're not cross the limit - no need to apply.

I never applied for visa and residency because I didn't need them. Never got an Emirates ID, neither a visa.
I know it sounds strange

 

[USDT]

does this threshold refer only to the volume of imports or total turnover?

 

[JimBeam]

does this threshold refer only to the volume of imports or total turnover?

I think it's total turnover.

 

[John Noel]

This is not legal advice, but my experience:

Better to register if you cross the threshold even if you don't do any business in UAE. I registered late by mistake and had to pay a fine for it.

Filling the VAT every 3 months is very easy if you don't do business in UAE, you just put zeros everywhere except in the field for business with zero VAT. There you put the total money you did in the period in AED. Takes literally 10 minutes to do.

but did you do it on the "EMARATAX" portal by chance? I can't understand how you could do it in 10 mins, I am now trying and it's such a pain in the a*s that I regret having read this conversation and thought it was a good idea to try

for example, what the hell is a "Business Flow Chart" that has to be uploaded?
and how did you fill in the "Declaration letter that the company has no standard Rated Supplies" if your company has no taxable supply?
Above all this part: "We started making taxable supplies on "Month, Year" and we reached the registration threshold (Mandatory AED 375,000/Voluntary AED 187,500) on "Month, Year"."

why can't I simply skip this part if all my activity is VAT exempt?

I will try to give them a call to clarify but if anyone of you has gone through the same experience please let me know

 

[Fred]

but did you do it on the "EMARATAX" portal by chance? I can't understand how you could do it in 10 mins, I am now trying and it's such a pain in the a*s that I regret having read this conversation and thought it was a good idea to try

for example, what the hell is a "Business Flow Chart" that has to be uploaded?
and how did you fill in the "Declaration letter that the company has no standard Rated Supplies" if your company has no taxable supply?
Above all this part: "We started making taxable supplies on "Month, Year" and we reached the registration threshold (Mandatory AED 375,000/Voluntary AED 187,500) on "Month, Year"."

why can't I simply skip this part if all my activity is VAT exempt?

I will try to give them a call to clarify but if anyone of you has gone through the same experience please let me know

This is how the reality looks like.

If you face every day with couple of clients the same outcome and the GoV is reluctant then I mention it here.

In return I'm framed as talking bulls**t - well, now you figure it out yourself.

Thank's for reporting back here how things workin in reality or in this case here - don't work.

 

[John Noel]

This is how the reality looks like.

If you face every day with couple of clients the same outcome and the GoV is reluctant then I mention it here.

In return I'm framed as talking bulls**t - well, now you figure it out yourself.

Thank's for reporting back here how things workin in reality or in this case here - don't work.

Yeah Fred you're right... I wanted to try also cause I needed a VAT number for other reasons but I would have avoided if I had known the procedure

 

[JackAlabama]

Yeah Fred you're right... I wanted to try also cause I needed a VAT number for other reasons but I would have avoided if I had known the procedure

If one cares to look, Fred is right on quite a few things regarding UAE

 

[clemens]

For Freezone Company below 100mAED/year - nothing.

That sounds to me like the true answer.

It is required to charge VAT zero rated, unless you can get an exception which for instance I did not get.

why would that be required! VAT at 0% I believe Fred know!

 

[sergeylim88]

can you just apply for vat exemption?

 

[turtle]

for example, what the hell is a "Business Flow Chart" that has to be uploaded?
and how did you fill in the "Declaration letter that the company has no standard Rated Supplies" if your company has no taxable supply?

I applied for a VAT exception for 2 of my business successfully. Just google "Business Flow Chart" and modify it for your business. It is not rocket science and EMARATAX officers will not review your application in extreme detail. If you still think it is confusing, then you should go with an accountant to fill out forms but expect 1-1.5K AED cost.

why can't I simply skip this part if all my activity is VAT exempt?

Because VAT exemption and VAT registration are still related to each other.

 

[John Noel]

I applied for a VAT exception for 2 of my business successfully. Just google "Business Flow Chart" and modify it for your business. It is not rocket science and EMARATAX officers will not review your application in extreme detail. If you still think it is confusing, then you should go with an accountant to fill out forms but expect 1-1.5K AED cost.



Because VAT exemption and VAT registration are still related to each other.

thanks Sir
these are the kind of useful comments I was looking for, bless you

can you just apply for vat exemption?

exactly what I am trying to do, not so easy as previously described by someone here

 

[Matrix observer]

In case of a FZCO doing online (financial instruments) trading and therefore not involving any VAT sales, do the threshold of income of 100k AED of total turnover can still get triggered (independantly if the income is not from VAT related sales) ?

 

[turtle]

In case of a FZCO doing online (financial instruments) trading and therefore not involving any VAT sales, do the threshold of income of 100k AED of total turnover can still get triggered (independantly if the income is not from VAT related sales) ?

You should check the detailed even if your transactions zero-rated, it is still counts for the threshold. You must also calculate your import-related(buying service from abroad) transactions.

 

[Fred]

In case of a FZCO doing online (financial instruments) trading and therefore not involving any VAT sales, do the threshold of income of 100k AED of total turnover can still get triggered (independantly if the income is not from VAT related sales) ?

375.000 AED - ca. 100.000 USD.

 

[Matrix observer]

375.000 AED - ca. 100.000 USD.

Thanks for the correction Fred.

You should check the detailed [...]

Thanks for your input. Also, what do you mean here ?

 

[sergeylim88]

@John Noel any updates on VAT exemption?
any advice how to do it right??

 

[uplana]

So if you want to be sure you register for VAT and pay the VAT on time. As someone else on the forum said before, if you can't afford to charge your customers VAT your product may not be worth it.

That said, if you can sleep well at night not to do so and you such kind of a person that take risks, you may don't care.

 

[sergeylim88]

vat is not paid on exported service or products

 

[gatrader]

the vat exemption has to be declared every year?

 

[turtle]

vat is not paid on exported service or products

Correct but has to be declared 0% rate and counts for the registration threshold.

the vat exemption has to be declared every year?

No one-time only.