Dubai's VAT (Value Added Tax) system is an important consideration for businesses operating in the emirate. As per Federal Decree-Law No. (8) of 2017 on Value Added Tax a business must register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000. Furthermore, a business may choose to register for VAT voluntarily where the total value of its taxablesupplies and imports (or taxable expenses) is in excess of the voluntary registration threshold of AED 187,500.

Mandatory Registration: A business must register if the total value of its taxable supplies and imports exceeds the mandatory registration threshold over theprevious 12 months, or The business anticipates that the total value of its taxable supplies and imports will exceed the mandatory registration thresholdin the next 30 days. The mandatory registration threshold is AED375,000.

VoluntaryRegistration: A business may apply to register if it does not meet the mandatory registration criteria and the total value of its taxable supplies and imports or taxable expenses in the previous 12 months exceeds the voluntary registration threshold, or the business anticipates that the total value of itstaxable supplies and imports or taxable expenses will exceed the voluntary registration threshold in the next 30 days. The voluntary registration threshold is AED 187,500.

Taxable Turnover: For the purposes of understanding whether a registration obligation exists, a taxable turnover refers to a supply of goods or services made by a business in the UAE that may be taxed at a rate of either 5% or 0%. Imports are also taken into consideration for this purpose, if a supply of such goods or services would be taxable if made within the UAE.

Filing VAT Returns andMaking Payments: Once you have registered for VAT in the UAE, you are required to file your VAT return and make related VAT payments within 28 days from the end of your tax period.

Stay informed about any changes or updates to Dubai's VAT laws and regulations, as they can evolve overtime. Remember that VAT compliance is necessary to avoid legal problems. ACTA Consultancy provides professional advice to ensure your business complies with all VAT requirements.

‍

‍

‍

‍