The Federal Tax Authority (FTA) is responsible for administering, implementing, and collecting federal taxes in the Emirates.

All businesses with an annual turnover of AED 375,000 must go for online registration. Taxpayers can register voluntarily if the total value of their taxable supplies exceeded AED 187,500 or if the business expects to exceed that threshold within the next 30 days.

1. Every Person, who has a Place of Residence in the State or an Implementing State and is not already registered for Tax, shall register in the following situations:

a. Where the total value of all supplies exceeded the Mandatory Registration Threshold over the previous 12-month period.

b. Where it is anticipated that the total value of all supplies will exceed the Mandatory Registration Threshold in the next thirty (30) days.

2. Every Person, who does not have a Place of Residence in the State or an Implementing State and is not already registered for Tax, shall register for Tax if he makes supplies of Goods or Services, and where no other Person is obligated to pay the Due Tax on these supplies in the State.

3. The Executive Regulation of this Decree-Law shall specify the time limits that a Person has to inform the Authority about his liability to register for Tax and the effective date of Tax Registration.

The businesses with an annual turnover of over AED 150 million to register before 31 October 2017 while businesses with an annual turnover exceeding AED 10 million (below AED 150 million) are allowed to register before 30 November 2017.

All businesses must be registered by 1 January 2018 and should submit their registration applications before 4 December 2017.

Khairallah Advocates & Legal Consultants can provide VAT Consultancy/VAT Advisory. For more information please contact us.