Here is some information regarding VAT and Corporate Tax to assist you in addressing client queries. Additionally, please refer to the attached email sent earlier regarding the Corporate Tax registration deadlines.

Freelance Permit Holders

VAT Registration – Must register within 30 days after surpassing the mandatory threshold of AED 375,000 to avoid fines.
Corporate tax Registration – Required only once revenue reaches AED 1 million.

VAT Registration

Ø Mandatory for the customer to registers once they surpassed the mandatory threshold of AED 375,00 within the next 30 days to avoid fines

Corporate Tax Registeration

Every business in the (UAE (including FZ and Non-FZ) must do the below three things regardless of having a revenue or no to avoid fines:
o Register for Corporate Tax (at least 10 working days before the deadline)
o Keep proper accounting records starting 1 January 2024
o File a corporate tax submission with the Federal Tax Authority

Read our other blogs also- UAE residency visa

Companies having more than one trade license-

If the customer has more than one trade license, he must register them all for VAT and CT. There is more than one option, which may be as a branch, a tax group, or separate and the matter varies from one case to another. So it would be better to offer him/her tax consultation in order to know the best way to register.

Corporate tax

Qualifying Activities

Free zone to free zone trading can be a qualifying activity, may be taxed at 0%. However we should not give any advise to clients regarding the same as we are not tax agents, offer them corporate tax consultation instead to confirm.

Activities conducted outside the UAE and from free zone to mainland
Are considered taxable turnover, tax is payable on net revenue exceeding AED 375,000 (9%)