The draft UAE Executive Regulations provide two immediate action
points – register for VAT as soon as possible and review your
contractual position. In this article we explain why these two
steps are important.
The much awaited UAE VAT Executive Regulations of Federal Decree
Law No. 8 of 2017 on Value Added Tax have been widely circulated in
draft (the Draft Regulations). On 8 November, the Director General
of the UAE Federal Tax Authority (the FTA) stated that the draft
has been signed by the UAE Cabinet.
Register for VAT as quickly as possible
Under Article 17 of the Draft Regulations, a person required to
register for VAT with effect from 1 January 2018 (the
Implementation Date) must apply for that registration in accordance
with the deadlines announced by the FTA. This will affect any
business which anticipates that the total value of all its VATable
supplies will exceed the mandatory registration threshold of
AED375,000.
