The United Arab Emirates is entering into a new era where its economy will be diversified or shifted from the oil-based economy to an open economy with multiple revenue generation options. The New Year is dawning with a new legislation taking effect which will make all the businesses and individuals residing and working in the United Arab Emirates and the Gulf Cooperation Council (GCC) member states to get them registered for the Value Added Tax. Same is the case with Abu Dhabi. Continue reading for getting proper information on how to get VAT training in Abu Dhabi.
January 1, 2018 is the date when the whole region will shed the tax-free regime forever as the oil reserves are shrinking fast and international oil prices are on the lowest levels for the past few years, which have dented the local economies dearly in the last few years. Time was running out fast for the regional governments to look for other revenue generation sources and they eventually decided to approve a suggestion by the International Monetary Fund (IMF) to impose Value Added Tax on items and services at a rate of 5 percent. Although, it’s quite a minimal tax rate, but it will still make an impact in everyone’s life in the region.
The Value Added Tax will be applicable on majority of the dealings in the United Arab Emirates. The government did exempt a few items from taxation in the initial phase. For businesses, all the companies that have an annual turnover above a certain specified limit will have to get them registered for VAT before it comes into effect on January 1, 2018. The government has set the threshold for VAT registration at AED 375,000 as Mandatory and at AED 187,500 as Volunteer.
The whole process has been simplified by the UAE Ministry of Finance as the companies and individuals can easily get them registered for VAT through the online portal which is http:ese rvices.mof.gov.ae. The procedure is similar for both individuals and companies but the types of documents required for the VAT application are different for the two groups. The basic documents required for the VAT registration are the proof of business and a request letter signed by the individual or a company authority. The businesses getting registered in Abu Dhabi will have to maintain certain records, which will be monitored by the authorities. Failing to maintain these records will result in penalty. Click to find out more on the subject.