Free Zone Companies need to Register for VAT in the UAE

Tax Service in UAE

DMCC Free Zone Companies need to Register for VAT in the UAE

Yes. Free Zone companies also should register for VAT in the UAE. DMCC Authority (a free trade zone in Dubai) urged companies incorporated under DMCC to get registered under VAT before the due date to avoid penalty.

The Federal Tax authority has not released the executive regulation of the VAT law yet. Hence the companies in the DMCC are confused whether DMCC zone will be a designated zone or not under the UAE VAT Law. The DMCC authority advised not to wait for the executive regulation for the companies to take a decision regarding VAT registration. It advised registering all companies falling under the minimum threshold criteria of annual taxable supply AED 375,000/.

What is the case of other Free Zones?

When we checked with the Federal Tax Authority, we got advice over the phone to do the registration for companies registered under JAFZA as well. It is a customs authority controlled Free Zone. Still, the advice was to go ahead for registration.

Anyone who is doing the online VAT registration can find the option “name of the authority issued trade license”. Under this list, all customs authority controlled free zones also included. It means companies registered in all other free zones also can register under VAT.

As per the UAE Federal Cabinet Decision no 40, the penalty for non-registering a taxable person under VAT requirements within the due date will be AED 20,000/. To avoid such a penalty, we urge all taxable persons to register well before the due date.

Emirates Chartered Accountants Group provides a hassle-free VAT Registration Service for Mainland & Free zones (single as well as for group companies). We will help generate a Tax Registration Number (TRN) to get you VAT ready. Emirates Chartered Accountants Group provides Vat Registration Services, Vat Implementation & VAT Return Filing Services all around the UAE -  Dubai, Abu Dhabi, Ajman Ras- Al Khaimah, Fujairah & Umm-Al Quwain. Please feel free to contact our below representatives for VAT registration services for your company:

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For Tax Services in Northern Emirate (Sharjah, Ajman, RAK, Fujairah)

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