GCC VAT & Dubai VAT

Registration Under GCC VAT

The Government is intending to open VAT registrations from the third quarter of 2017 on a voluntary basis and from the final
quarter of 2017 on a compulsory basis for those that choose not to register earlier.

  • VAT registration threshold for all UAE-resident businesses
  • Businesses that make taxable supplies or imports that exceed the threshold of AED375,000 – Must Register
  • Businesses that make taxable supplies and imports are less than the mandatory registration threshold, but exceed the voluntary registration threshold of AED187,500. May Choose to Register
  • A person may register voluntarily if their expenses exceed the voluntary registration threshold (e.g. start-up businesses with no turnover).
  • Exempt supplies and supplies outside the scope of VAT are not used in calculating the VAT registration thresholds.
  • No threshold applies to non-resident businesses but if they make taxable supplies within the UAE, they will be required to register for VAT.
  • However, in circumstances where any other UAE resident business is responsible for accounting for VAT on that supply (e.g. self-assess VAT under the reverse charge mechanism), the VAT registration shall not be required.
  • Businesses that satisfy certain conditions (such as being resident in the UAE, being related/associated parties and at least one business being VAT registered) will be able to register as a VAT group.

Working Under GCC VAT

Challenges under GCC VAT

Our Solution Approach