How to apply for VAT excemption (Dubai free zone)

[hanoib]

Hi all,

Anyone knows how to apply for VAT excemption? All customers are outside the GCC.

I think that it needs to be done through the official site.

Anyone has done it and can walk me through it?

Thanks!

@uranium I am tagging you (I hope you don’t mind) as I think you have the answer. Thank you.

 

[John Doe GOLDEN STAMP]

Hi all,

Anyone knows how to apply for VAT excemption? All customers are outside the GCC.

I think that it needs to be done through the official site.

Anyone has done it and can walk me through it?

Thanks!

@uranium I am tagging you (I hope you don’t mind) as I think you have the answer. Thank you.

Free zones do not pay VAT, to your peace of mind. But they pay Corporate tax. Regarding the latter, they (who) can certainly receive benefits for Small and Medium-sized businesses, but for this you need to comply with the requirements.

Below is an official document on benefits, if you are interested:

https://tax.gov.ae/DataFolder/Files/Guides/CT/Small%20Business%20Relief%20Guide%20-%20EN%20-%2027%2008%202023.pdf

 

[hanoib]

So far I have read online is that you need to register for VAT if you made more than 375k AED a year or expect to make 375k AED in upcoming month.

 

[JackAlabama]

So far I have read online is that you need to register for VAT if you made more than 375k AED a year or expect to make 375k AED in upcoming month.

that was a talk back and forth and no clear answer.
You certainly need to register if you are due for vat due to Gcc income, but if its all non Gcc territory income most dont seem to register.

 

[hanoib]

that was a talk back and forth and no clear answer.
You certainly need to register if you are due for vat due to Gcc income, but if its all non Gcc territory income most dont seem to register.

Yes, I have heard that most don’t register. But I am unsure if that’s the correct approach, hence I asked.

 

[uranium]

You have to apply for tax exemption with FTA.
I know you going to say that you have no customers in uae but to on the safe side, ask your accountant to apply for tax exemption on FTA website and it is no easy job. He will have to supply all your customers invoices and explain to FTA your business model.
After submission, you wait like a month and you get email from FTA and sms if approved.

 

[hanoib]

@uranium that’s exactly what I had in mind.
It’s best to apply for an exemption through FTA so you have a valid proof.

Thanks.

@uranium can you pm me? It seems I can’t do that for some reason :s

 

[JackAlabama]

You have to apply for tax exemption with FTA.
I know you going to say that you have no customers in uae but to on the safe side, ask your accountant to apply for tax exemption on FTA website and it is no easy job. He will have to supply all your customers invoices and explain to FTA your business model.
After submission, you wait like a month and you get email from FTA and sms if approved.

what do they ask for the corp tax registration? The same thing with business model etc.?

 

[uranium]

what do they ask for the corp tax registration? The same thing with business model etc.?

I believe some forms your accountant should fill for you
Business Model and invoices must prove that you have don't and will not have customers in UAE

 

[Martin Everson]

Anyone knows how to apply for VAT excemption?

For the love of God use an accountant as you don't want to mess up.

what is corporate tax penalty in uae?

According to the existing corporation tax framework, failure to file corporate tax returns will result in fines and penalties. On March 1, 2024, the new decision came into force vide Cabinet Decision No. 10 of 2024, which modifies Cabinet Decision No. 75 of 2023's schedule of violations and...

www.offshorecorptalk.com

 

[Alexmorgan]

Free zones do not pay VAT, to your peace of mind. But they pay Corporate tax. Regarding the latter, they (who) can certainly receive benefits for Small and Medium-sized businesses, but for this you need to comply with the requirements.

Below is an official document on benefits, if you are interested:

https://tax.gov.ae/DataFolder/Files/Guides/CT/Small%20Business%20Relief%20Guide%20-%20EN%20-%2027%2008%202023.pdf

All in UAE and all activities?