The introduction of VAT registration will be in two phases. Phase one will start on 1 January 2018 and companies with revenues over AED3.75m will be required to register and account for VAT. Companies with revenues between AED 1.87m and AED 3.75m will have the option to register under phase one or wait until phase two, although no dates have yet been announced for phase two.
Check out our blog entry “What if your business turnover falls below the compulsory VAT registration threshold?” for the implications for your company if it trades below the Phase one and Phase two turnover thresholds.
Contact The Accounts Dept. for help in setting up an appropriate accounting system for your business, and stay in the loop on VAT announcements by following The Accounts Dept. blogs on our website, social media and Linkedin.
Written by Gabrielle Kane, an ICAEW Chartered Accountant, who works at The Accounts Dept. in Dubai.
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