Parus Management Consultancies company offers services for company registration as VAT payers.

Value Added Tax (VAT) was introduced in the UAE on January 1, 2018.

What you need to know about VAT in the UAE?

The standard rate is 5%. There is mandatory and voluntary registration as a taxpayer.

Mandatory VAT registration is required if:

  • Taxable income exceeds 375,000 AED within 12 months;
  • If an income exceeding 375,000 AED is expected within the next month.

An application for mandatory registration is submitted within 30 days from the moment the income exceeds 375,000 AED.

You can voluntarily register for VAT if taxable income for 12 months exceeds 187,500 AED.

VAT penalties:

  • 10,000 AED for late application for registration;
  • 1,000 AED for for late submission of the declaration (2,000 AED for each subsequent occurrence);
  • 2% on the amount of unpaid VAT (+ 4% for each month of delay);
  • 2,500 AED for absence of a tax invoice;
  • 10,000 AED for the absence of accounting for VAT payer,
  • 20,000 AED for each subsequent occurrence.

If you need to register your company as a VAT payer in the UAE, please contact our specialists!