What happens if you don't register for VAT in Dubai?

[emihunter]

do you think fines would be more or less︀ now?

I too have zero rated sales but unfortunately I crossed the threshold almost 2︁ years ago so I'm really worried about the consequences. I think I can manage the︂ fines but I wonder if there'll be a lot more scrutiny (for example full audit)︃ because I'm so late to register

 

[ecool]

I think now are less than at the beginning as⁣ they introduced some amendment to the fines making them lower for late registration and late⁢ filling if I remember correctly. Regarding having more auditing, I don’t think it has any︀ effect but with the introduction of corporate tax who knows what happens

 

[emihunter]

thanks a lot⁤ for your help. finally getting some answers so I'm happy haha 🙂

do you know roughly⁣ how late you were when registering?

 

[USDT]

Did you receive an exception from VAT registration (TRN︀ ending with XC)? In that case, do you still need to send quarterly zero VAT︁ filings? It's unclear then what the purpose of the exception is

 

[emihunter]

I think he got rejected⁠ for the exception for some reason but then continues to file quarterly returns and just⁤ puts zeros in all columns so it's easy. if you do get exception granted, then⁣ you don't need to do any of this. I'm in the process of applying for⁢ exception, perhaps we should stay in touch

 

[ecool]

Around 3 months late. And 100% of revenue is zero VAT so it really pissed me‍ to have to pay a fine when I never pay VAT, but I told them⁠ and they replied that still I had to pay the fine as I registered late…⁤
Never applied for VAT exception.︀ I fill the VAT every quarter with all fields to zero except the field of︁ zero rated sales where I write all the revenue. I use Zoho books with an︂ accountant and he fills everything there in case there is a future audit. Zoho books︃ makes it very easy to do the VAT filing, it takes less than 5 minutes︄ to do

 

[Clank]

You don’t need to send⁠ VAT fillings if you get an exemption.

If you don’t make any sales to the⁤ UAE you can apply for it mine got approved in 5 days.

 

[emihunter]

was it a complex process for you to get the︄ exception? did you have to provide a lot of documents or proof like bank statements?︅

 

[bio]

What was the process of applying for the‍ exemption? Did you have to register first?

 

[ImKing]

I have the same question, is it easy‍ to accomplish ?

 

[Clank]

It was easy for me, I just had to explain them the business model‍ with a diagram.

 

[bio]

Where did you send this explanation? I can't‍ find any information online on where to apply for this exemption. I even called the⁠ FTA and they didn't know either.

 

[emihunter]

just go through the normal VAT registration process. on one of⁠ the pages there'll be a box you need to tick that says "apply for exception"⁤ or something similar.

 

[rdevalex]

Should zero rated taxable supplies be counted for the 375,000 AED threshold for those who‌ involed in E-Commerce business (for example, mobile apps business)? It seems there are special rules‍ for VAT for such businesses described here:

https://tax.gov.ae/DownloadOpenText...rce/E_Commerce_VAT Guide_EN_09_08_2020_EN.pdf
The quote from this document:

 

[hiju]

Does this allow you to avoid charge VAT for your services⁠ sold outside UAE ?

 

[cryptotree]

Service outside of they uae you don’t have to charge‍ vat anyway?

 

[Houdini]

You have to charge VAT to any person that is not a business.‌