Dubai March 27, 2023:

Tax Alert:

The Federal Tax Authority (FTA) has started issuing notifications to individuals or businesses who have reached the mandatory registration threshold of AED 375,000 and are still not registered for VAT.

It is important to note that individuals dealing with commercial properties in the UAE to understand the mandatory VAT registration threshold and register themselves before selling or buying commercial properties. VAT registration is a legal obligation for businesses that exceed the threshold and failure to register can result in penalties and fines.

If you receive a notification from the FTA regarding mandatory VAT registration, it is crucial to register within the given time frame of 10 days and share your VAT Tax Registration Number (TRN) to the designated email – nonregistered@tax.gov.ae. In case you have received this notice and you do not reach the mandatory threshold or do not meet the VAT registration requirements, you should provide proof documents to the designated email.

All individuals or businesses who have not registered for VAT must take this matter seriously and act immediately to comply with tax regulations. Failure to do so can have serious consequences.