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Dubai Free Trade zone company's value-added tax details?

Released Date: Jan 15,2023 Article Source: HUANZE

We have mentioned the VAT of Dubai Free Trade Zone Company. If the company sells its products to companies outside the same free trade zone in UAE, it needs to collect it from customers5%But if purchases and sales by Dubai companies are made outside the UAE or between companies in the same free trade zone as the UAE, there is no VAT.

We talked about that earlierDubai Free Trade ZoneThe company's VAT, if the company sells the products to companies outside the same free trade zone in the UAE, shall be levied on the customers5%But if purchases and sales by Dubai companies are made outside the UAE or between companies in the same free trade zone as the UAE, there is no VAT.

Dubai Free Trade ZoneCorporate VAT, DubaiVAT in2018years1month1The beginning of the day, the official implementation, the tax point is5%, the sale of goods in the UAE will incur VAT if the business's taxable sales exceed375,000Dirham's mandatory registration threshold, businesses must register for VAT. In addition, if a business's taxable sales are below the mandatory registration threshold but above187,500Dirham, businesses can register for VAT voluntarily. Similarly, businesses can register voluntarily if their operating costs exceed the threshold for voluntary registration. The last opportunity for voluntary registration is designed to enable start-ups to register without turnover to pay VAT. If a Dubai company sells products to a company in the UAE outside the same free trade zone, it will be charged to the customer5%But if purchases and sales by Dubai companies are made outside the UAE or between companies in the same free trade zone as the UAE, there is no VAT.

VAT on the following business categories is0%:*Exports of goods and services to (None GCC) outside the Gulf Cooperation Council; *International transportation and related supplies and consumables; *The supply of certain sea, air and land means of transport such as aircraft and ships; *Certain investment grade precious metals (e.g. gold, silver, purity99%); *New residential properties opened for the first time within three years of construction.

On the following business categories will be exempt from VAT! *Some financial, financing services business (VAT legislation clarifies) *Residential property *Bare ground *Local passenger transport.

Dubai Free Trade zone company's value-added tax details?

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