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

[emihunter]

In my case were zero rated. I never paid VAT and I don’t have to pay VAT as all supplies are zero rated, but doesn’t matter. You register late or you file the return late (even being zero rated supplies) and you get a fine…

Also just saw your post asking how much I paid. For me it was years ago when they introduced VAT so I don’t remember exactly but was for sure more than 10k. But since then, things have changed regarding fines, so it might be different now

do you think fines would be more or less now?

I too have zero rated sales but unfortunately I crossed the threshold almost 2 years ago so I'm really worried about the consequences. I think I can manage the fines but I wonder if there'll be a lot more scrutiny (for example full audit) because I'm so late to register

 

[ecool]

do you think fines would be more or less now?

I too have zero rated sales but unfortunately I crossed the threshold almost 2 years ago so I'm really worried about the consequences. I think I can manage the fines but I wonder if there'll be a lot more scrutiny (for example full audit) because I'm so late to register

I think now are less than at the beginning as they introduced some amendment to the fines making them lower for late registration and late filling if I remember correctly. Regarding having more auditing, I don’t think it has any effect but with the introduction of corporate tax who knows what happens

 

[emihunter]

I think now are less than at the beginning as they introduced some amendment to the fines making them lower for late registration and late filling if I remember correctly. Regarding having more auditing, I don’t think it has any effect but with the introduction of corporate tax who knows what happens

thanks a lot for your help. finally getting some answers so I'm happy haha

do you know roughly how late you were when registering?

 

[USDT]

In my case were zero rated. I never paid VAT and I don’t have to pay VAT as all supplies are zero rated, but doesn’t matter. You register late or you file the return late (even being zero rated supplies) and you get a fine…

Also just saw your post asking how much I paid. For me it was years ago when they introduced VAT so I don’t remember exactly but was for sure more than 10k. But since then, things have changed regarding fines, so it might be different now

Did you receive an exception from VAT registration (TRN ending with XC)? In that case, do you still need to send quarterly zero VAT filings? It's unclear then what the purpose of the exception is

 

[emihunter]

Did you receive an exception from VAT registration (TRN ending with XC)? In that case, do you still need to send quarterly zero VAT filings? It's unclear then what the purpose of the exception is

I think he got rejected for the exception for some reason but then continues to file quarterly returns and just puts zeros in all columns so it's easy. if you do get exception granted, then you don't need to do any of this. I'm in the process of applying for exception, perhaps we should stay in touch

 

[ecool]

thanks a lot for your help. finally getting some answers so I'm happy haha

do you know roughly how late you were when registering?

Around 3 months late. And 100% of revenue is zero VAT so it really pissed me to have to pay a fine when I never pay VAT, but I told them and they replied that still I had to pay the fine as I registered late…

Did you receive an exception from VAT registration (TRN ending with XC)? In that case, do you still need to send quarterly zero VAT filings? It's unclear then what the purpose of the exception is

Never applied for VAT exception. I fill the VAT every quarter with all fields to zero except the field of zero rated sales where I write all the revenue. I use Zoho books with an accountant and he fills everything there in case there is a future audit. Zoho books makes it very easy to do the VAT filing, it takes less than 5 minutes to do

 

[Clank]

Did you receive an exception from VAT registration (TRN ending with XC)? In that case, do you still need to send quarterly zero VAT filings? It's unclear then what the purpose of the exception is

You don’t need to send VAT fillings if you get an exemption.

If you don’t make any sales to the UAE you can apply for it mine got approved in 5 days.

 

[emihunter]

Around 3 months late. And 100% of revenue is zero VAT so it really pissed me to have to pay a fine when I never pay VAT, but I told them and they replied that still I had to pay the fine as I registered late…

Never applied for VAT exception. I fill the VAT every quarter with all fields to zero except the field of zero rated sales where I write all the revenue. I use Zoho books with an accountant and he fills everything there in case there is a future audit. Zoho books makes it very easy to do the VAT filing, it takes less than 5 minutes to do

You don’t need to send VAT fillings if you get an exemption.

If you don’t make any sales to the UAE you can apply for it mine got approved in 5 days.

was it a complex process for you to get the exception? did you have to provide a lot of documents or proof like bank statements?

 

[bio]

You don’t need to send VAT fillings if you get an exemption.

If you don’t make any sales to the UAE you can apply for it mine got approved in 5 days.

What was the process of applying for the exemption? Did you have to register first?

 

[ImKing]

You don’t need to send VAT fillings if you get an exemption.

If you don’t make any sales to the UAE you can apply for it mine got approved in 5 days.

I have the same question, is it easy to accomplish ?

 

[Clank]

I have the same question, is it easy to accomplish ?

It was easy for me, I just had to explain them the business model with a diagram.

 

[bio]

It was easy for me, I just had to explain them the business model with a diagram.

Where did you send this explanation? I can't find any information online on where to apply for this exemption. I even called the FTA and they didn't know either.

 

[emihunter]

Where did you send this explanation? I can't find any information online on where to apply for this exemption. I even called the FTA and they didn't know either.

just go through the normal VAT registration process. on one of the pages there'll be a box you need to tick that says "apply for exception" or something similar.

 

[rdevalex]

Should zero rated taxable supplies be counted for the 375,000 AED threshold for those who involed in E-Commerce business (for example, mobile apps business)? It seems there are special rules for VAT for such businesses described here:

https://tax.gov.ae/DownloadOpenText...rce/E_Commerce_VAT Guide_EN_09_08_2020_EN.pdf
The quote from this document:

The main categories of supplies and imports that need to be taken into account for the purposes of the mandatory registration threshold, and the voluntary registrationthreshold (discussed in Part 2.4.2 below), are:

• Supplies of goods or services made in the UAE in the course of business.
• Any goods or services that the person has imported into the UAE that wouldhave been subject to VAT had they been supplied in the UAE.

The person should not include in this calculation the value of any supplies which are either exempt from VAT or are outside the scope of UAE VAT.

 

[hiju]

just go through the normal VAT registration process. on one of the pages there'll be a box you need to tick that says "apply for exception" or something similar.

Does this allow you to avoid charge VAT for your services sold outside UAE ?

 

[cryptotree]

Does this allow you to avoid charge VAT for your services sold outside UAE ?

Service outside of they uae you don’t have to charge vat anyway?

 

[Houdini]

Service outside of they uae you don’t have to charge vat anyway?

You have to charge VAT to any person that is not a business.