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OffMyBack

Mentor Group Gold
Sep 20, 2020
166
109
43
43
375000 vat turnover.
Declaration letter that the company has no standard Rated Supplies" if your company has no taxable supply?


only things ratable are invoices issued to local companies.

so if you invoice 5 million usd to a client in usa, this doesnt count.
if you invoince 400k aed to a local freezone or mainland ON TOP, then yes it counts. BUt only this 400k aed IF EXEMPT.

ratable turnover..... in uae when exporting a "service" its not exemplt, they say its 0%. So while no vat is due, its admin work and counts towards the threshold. Heaven knows why they implemented it like this
 
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turtle

Active Member
Dec 5, 2022
86
47
18
33
Dubai
375000 vat turnover.
Declaration letter that the company has no standard Rated Supplies" if your company has no taxable supply?


only things ratable are invoices issued to local companies.

so if you invoice 5 million usd to a client in usa, this doesnt count.
if you invoince 400k aed to a local freezone or mainland ON TOP, then yes it counts. BUt only this 400k aed.

ratable turnover.....
This is completely wrong. 0% rated exports are taxable supplies and count for the threshold.
 

OffMyBack

Mentor Group Gold
Sep 20, 2020
166
109
43
43
Indeed @turtle Ill correct, 0% rated exports are a taxable supply, just that the vat rate rate is 0% therefore counts to your threshold indeed. Ill clarify that the UAE implemented somewhat different rules vs rest of world. For example a service supplied in uk to a b2b outside uk is exempt from vat rather than 0%.

Exempt means no vat applicable at all
0% means vat is due but its zero rated therefore 0
HOWEVER there are many caveats, so not all "exported" services are vatable. For example telecommunications and electronic services (such as digital marketing most likely, guidance still needed) will be regarded as a supply outside the UAE so not vat as its out of scope (exempt).

so every situation is unique....
 
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turtle

Active Member
Dec 5, 2022
86
47
18
33
Dubai
@turtle
so what's the procedure to get exempt? any advices how to do this most efficient?
VAT exempt and VAT exception are different things. If you're 100% sure that you won't have any supplies or VAT subject imports, then proceed with the VAT registration and request an exception. You must log in to the FTA portal and complete the form. The form is interactive and will guide you but don't forget to tick the box for VAT exception.
 

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