VAT in UAE: Common doubts and queries answered

barrel applies on the materials made by a VAT-registered individual throughout company for factor to consider

Inquiry: We frequently get goods/services from brand-new vendors. Exactly how could I validate the condition of a Tax obligation Enrollment Number (TRN) of an entity?

Solution: A customer can go to the Federal Tax obligation Authority (FTA) web site at to validate the condition of any type of TRN.

Inquiry: I have actually terminated my profession permit of the business which is VAT-registered. Do I require to deregister from barrel or will it be immediately deregistered? Exist any type of fines?

Solution: A business should put on FTA for barrel deregistration, if:

a) the business discontinues to make taxed materials; or

b) the taxed materials of the business (in the last 12 schedule months) is much less than Dh187,500, based on particular problems.

As you have actually terminated the profession permit of the business, it suggests that the business has actually discontinued to make taxed materials.

The on the internet application for deregistration need to be sent to FTA made within 20 company days from completion of the month. Any kind of hold-up past 20 company days will certainly bring in a regular monthly fine of Dh1,000 based on an optimum of Dh10,000.

Inquiry: My business is VAT-registered as well as sending quarterly barrel returns. The business sends the barrel return for the quarters Feb-Apr, May-Jul, Aug-Oct as well as Nov-Jan. We desire the barrel quarters to straighten with schedule quarters. Could I transform the barrel return declaring quarters for my business?

Solution: Yes, a business can put on FTA for a modification in barrel return quarters state from Feb-Apr & & onwards to Jan-Mar & & onwards.

The demand can be made via management exemption application. The application is readily available on FTA’s web site. A filled-in kind ought to be sent out by e-mail to FTA on

Inquiry: My business gives cellphones to the staff members for company usage. Any kind of excess and/or individual use by the worker is recuperated from the worker via a wage reduction. The business has actually not recuperated input credit scores on the cellphone billings. Should the business fee barrel?

Solution: barrel applies on the materials made by a VAT-registered individual throughout company for factor to consider. Barrel would certainly apply on the materials for factor to consider also if input barrel credit scores is not recuperated on the matching goods/services.

Healing from staff members would certainly total up to factor to consider for the materials. Appropriately, the recuperation from staff members need to undergo barrel.

The author is the handling supervisor of AskPankaj Tax obligation Professionals. For responses as well as questions, you might contact Sights revealed are his very own as well as do not show the paper’s plan.

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