5% VAT on invoices from Dubai Freezone, also to foreign companies?

[bigbite100]

Hello, I have read that Dubai Freezone have 0 tax except 5% VAT.

Is the 5% VAT always mandatory on invoices, regardless to which countries the bill goes to?

For example, if the Dubai Freezone company invoices a US LLC company, will the US LLC company still have to pay 5% VAT on the invoices?

Is there a way to legally avoid the VAT on the invoices?

Thank you in advance.

 

[bigdaddyleon]

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

If I understand it correctly, after $100,000 of revenue a year you will have to register for VAT in Dubai. But as all the revenue is coming outside of UAE, there wouldn't be any VAT required to be charged. What's the worst thing that can happen if I decide to not register for VAT?

www.offshorecorptalk.com

 

[bigbite100]

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

If I understand it correctly, after $100,000 of revenue a year you will have to register for VAT in Dubai. But as all the revenue is coming outside of UAE, there wouldn't be any VAT required to be charged. What's the worst thing that can happen if I decide to not register for VAT?

www.offshorecorptalk.com

Thank you, but I am not sure if this was answering my question. Registering for VAT is no problem. but does a US LLC company need to pay VAT on the invoice or can the Dubai comany write VAT=0$ ?

 

[bigdaddyleon]

Thank you, but I am not sure if this was answering my question. Registering for VAT is no problem. but does a US LLC company need to pay VAT on the invoice or can the Dubai comany write VAT=0$ ?

the answer was in the linked thread.

No the US LLC does not have to pay VAT and you do not have to pay it.