VAT Return Filing


  • NECESSITY OF VAT: With the view of sustaining the current levels of economic growth, the GCC members Bahrain, Kuwait, Oman, Saudi Arabia and the UAE (United Arab Emirates) have started implementing VAT to generate the additional revenue and to bring more transparency in their structure.
  • UAE and Saudi Arabia have implemented VAT from 1st January 2017 and Oman have implemented Vat from 1st July 2018.
  • VAT RATE: VAT rate in UAE has been fixed at 5% the same has also been agreed by other GCC members.

REGISTRATION UNDER GCC VAT

The VAT Law provides following limits to register for UAE VAT Law:

  • Taxable supplies or imports that surmount the brink of AED 375,000 by the businesses- must register
  • Taxable supplies or imports that fall short of the mandatory brink however exceed the mark of AED 187,500. May choose to register.
  • People may register willingly; given their expenses transcend the registration threshold. (Like start up business with no turnover.) Key pointers to be kept in mind:
    • Supplies exempted and those beyond the scope of VAT are not availed in computing the thresholds of VAT registration.
    • The non resident businesses have no threshold; however in case where taxable supplies are made within the UAE, they will have to register for VAT.
    • Although, in scenarios where business of any other UAE resident is in charge of accounting for VAT on that supply(such as the self assess VAT under the mechanism of reverse charge) are non obligatory.
    • Businesses that certainly meet defined conditions(for instance being a UAE resident, being related/affiliated parties and at the minimum one business being VAT registered)

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