If property is owned and self-used, registration is not required.
If it is rented but if it is residential property more than 3 years old, registration is not required. However, if it is residential property newly constructed or a commercial property (irrespective of new or old), the registration is required, if the rental exceeds Dh375,000.
However, if property is not for rental or business and sold in individual capacity, registration is not required irrespective of selling price.
Is VAT applicable on renewal of lease agreement of residential property?
No
In contracting business we get payment delays up to 6 months and often the payment settlement is lesser value than the invoiced value. Can we prepare the “Performa Invoice” or a “payment application” at initial stage without actually paying VAT?
Yes. If it is a valuation application under consecutive invoices or periodic payments. However once it is certified, you shall raise tax invoice. If final settlement is lesser than tax invoice, you shall issue tax credit note.
We are a Dubai registered company buying and selling in different countries and ship goods directly between those countries. Is VAT applicable in my business?
If goods are not entering UAE, the transactions would be out of scope of UAE VAT laws.
Our company is a newly registered free zone entity, do we have to register for VAT?
No, unless you cross the threshold limit of Dh375,000 in next 30 days.
Does VAT apply on transport of goods within the country over lands?
Yes.
Do auto-maintenance workshops need to register for VAT?
Registration is based on taxable supplies and not the nature of activity. If the workshop’s turnover exceeds threshold limit, it must register.
My DMCC company has only one activity which is brokerage between non-GCC suppliers, and non-GCC importers. Since both suppliers and importers are out of GCC is VAT applicable?
Applicable if brokerage service is performed in UAE.
Is VAT applicable on sale and trading in used auto tires and spare parts?
Registration is based on taxable supplies and not the nature of activity. If the workshop’s turnover exceeds threshold limit, it must register.