What to do in the UAE after registering a company
After registering a legal entity in the UAE, it is necessary to keep accounting records, submit reports and take other measures to comply with local legislation when doing business.
"All companies must keep accounting records and prepare annual financial statements. At the same time, these and primary documentation must be kept for 5 years. In some Free Zones - longer." Ekaterina Kupreenkova, бухгалтер
Mainland and Free Zone companies must also conduct audits and submit financial statements to government agencies. However, some free zones do not have this obligation. Therefore, it is necessary to check whether your free zone requires audits and financial statements.
Fine from AED 10,000 (USD 2,740)
For non-compliance of accounting with the requirements of UAE legislation.
VAT. Registration and reporting
The company is required to register with the tax authority and obtain a VAT number (TRN)
If the company's taxable turnover and/or imports exceeded AED 375,000(USD 102,000)
- for the previous 12 months, or
- will exceed this threshold within the next 30 days
A company can obtain a VAT number voluntarily
If the company proves that its taxable turnover exceeded AED 185,000 (approximately USD 50,000):
- for the previous 12 months, or
- will exceed this threshold within the next 30 days
VAT rate is 5%
After registration, the company must include VAT in the invoices and pay the tax to the budget. You must submit a VAT tax return and pay it:
- quarterly within 28 days after the end of the tax period (quarter or month) if the turnover is less than AED 150 million
- monthly if the turnover is more than 150 million AED
Fine AED 10,000 (USD 2,740)
For failure to notify the tax authority of the obligation to apply VAT.
Fine AED 15,000 (USD 4,000)
If the taxpayer does not indicate the price including VAT.
Income tax. Registration and reporting
The company is required to register with the tax authority and obtain a VAT number (TRN)
If the company's taxable turnover and/or imports exceeded AED 375,000(USD 102,000):
- for the previous 12 months, or
- will exceed this threshold within the next 30 days
A company can obtain a VAT number voluntarily
If the company proves that its taxable turnover exceeded AED 185,000 (approximately USD 50,000):
- for the previous 12 months, or
- will exceed this threshold within the next 30 days
VAT rate is 5%
After registration, the company must include VAT in the invoices and pay the tax to the budget. The VAT tax return must be submitted and paid:
- ежеквартально within 28 days after the end of the tax period (quarter or month) if the turnover is less than AED 150 million
- ежемесячно , if the turnover is more than 150 million AED
Fine AED 10,000 (USD 2,740)
For failure to notify the tax authority of the obligation to apply VAT.
Fine AED 15,000 (USD 4,000)
If the taxpayer does not indicate the price including VAT.
Excise tax. Registration and reporting
Excise duties in the UAE apply to certain types of goods:
- carbonated drinks - 50%
- sweetened drinks - 50%
- energy drinks - 100%
- tobacco and tobacco products - 100%
- Electronic smoking devices - 100%
- liquids for smoking devices - 100%
Companies that sell goods subject to excise duty must register with the tax authority and file a monthly declaration. The tax must be paid within 15 days of the reporting month.
“Registration is required for anyone who imports, manufactures or stores excisable goods in the UAE or releases excisable goods from Designated Zones for consumption in the UAE. Registration must be completed within 30 days of engaging in excisable activities” Ilya Vydrych, Development Manager бизнеса
Special provisions apply to Designated Zones. These zones are not considered UAE territory for excise tax purposes.
Goods imported into the UAE that are immediately and properly moved within the Designated Zones are not considered to be imported into the UAE. Excise duty on such goods is levied upon release for consumption within the UAE.
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About Versus
Versus is a leading consulting group providing legal and accounting services in key foreign markets.
Over the years of working in the UAE and other MENA countries, we have acquired a deep knowledge of local legislation, which, combined with knowledge of international standards, allows us to offer solutions tailored to the unique needs of each client.
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