UAE VAT: VAT Applicability in Dubai

UAE VAT: VAT Applicability in Dubai:UAE VAT was introduced from 1st January 2018. One of the main reason of its implementation was to help government to move towards its vision of reducing dependence on oil and other hydrocarbons as a source of revenue.

UAE VAT: VAT Applicability in Dubai

• Rate

All Taxable Supplies will be liable to VAT at 5 per cent standard rate.

• Registration

Businesses that meet the minimum annual turnover requirement (AED 375,000 in preceding 12 months) will be required to register for VAT. There is also option to get oneself voluntary registered in the value of supply or expenses exceeds AED 187,500/-. Tax Registration Number (TRN): A unique number issued by the Authority for each Person registered for Tax purposes.

• Invoice (Credit) method to be followed

This method is also called the Tax credit method or Voucher method as the business takes the credit of the tax paid by him on the inputs purchased by him and deposits the balance amount to the VAT department. From the following illustration, the mode of calculation of tax under this method will become Clear :

Stage	Particulars	VAT Liability	Less VAT Credit	Net Tax to Government
I	A farmer grows dates & sells it to a processing factory. He collects VAT from the factory & pays it to the government.	AED 50	He will not get any VAT credit, being the first seller.	AED 50
II	Dates are than processed into syrup & VAT is charged by factory owner from retailer.	AED 75	He will get input of VAT paid to farmer i.e.AED 50	AED 25
III	Syrup is then sold to customers at retail outlet.	AED 100	He will get input of VAT paid to factory owner i.e.AED 75	AED 25

• VAT to be introduced in other GCC countries also:

All GCC Countries have agreed to implement VAT latest by January, 2019 and in that direction, have already unanimously passed the Framework, which is consumption based model for common law. The Member States of the Gulf Cooperation Council (GCC), are: The United Arab Emirates, The Kingdom of Bahrain, The Kingdom of Saudi Arabia, The Sultanate of Oman, The State of Qatar, and The State of Kuwait, For detailed knowledge of U.A.E. VAT please refer the background material released by The Institute of Chartered Accountants of India on the link provided here under:

vat uae, vat in uae pdf, uae vat law pdf, uae vat registration online, federal tax authority uae, vat login uae, vat in uae 2018, vat registration uae, UAE VAT (VALUE ADDED TAX), uae vat registration online, uae vat law pdf, fta uae vat, vat in uae pdf, uae vat exemptions, vat login uae, uae vat registration portal, uae vat executive regulations, Value Added Tax (VAT) - The Official Portal of the UAE Government, UAE VAT GUIDE, Federal Tax Authority, Taxation in the United Arab Emirates, income tax in uae for foreigners, uae tax guide, dubai tax 2018, income tax dubai 2018, salary tax in uae, uae tax free salary, dubai income tax calculator, uae income tax