VAT Registration Process for Amazon Companies in UAE

The VAT registration process in UAE is often a complex task for companies, thus it is imperative for taxable persons to seek the expert services of UAE tax consultants to seamlessly register for VAT and to stay compliant with VAT regulations and standards.   

VAT Registration Steps for Amazon Companies

The first step for VAT Registration for Amazon Companies is to create an account with the Federal Tax Authority (FTA). The taxable person has to visit the official FTA website and fill out the relevant forms to complete the registration, a copy of your commercial license and a valid passport or Emirates ID has to be provided. Once the taxable person successfully registers, the FTA issues a Tax Registration Number (TRN) which can be used to confirm the company’s VAT status.

Subsequently, companies ought to file for VAT returns on a quarterly basis. These returns have to be submitted through the e-Service portal and must include detailed information on the company’s income, output VAT, and other expenditures. The FTA reviews the furnished information and issues a quarterly VAT certificate based on their findings. 

Further, it is essential for Amazon businesses operating in the UAE to keep up-to-date records of their financial transactions and other business activities. 

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VAT Refund For Visiting Unregistered Foreigner Businesses In UAE

The VAT registration threshold for Amazon companies in the UAE is AED 375,000. Any company with total taxable supplies and imports that exceeds this threshold must register for VAT. Failure to timely register for VAT accrues hefty fines on companies, thus it is advisable for companies to consult top tax consultants to stay compliant.

What Are the VAT Charges for Different Types of Supplies Made Online?

The applicable VAT rate in the UAE is 5% and must be applied on all applicable supplies made within the UAE, as well as supplies of goods or services that are imported into the UAE.

For supplies made over the internet, VAT is applicable for certain types of supply. Specifically, any goods or services sold to customers located within the UAE are subject to VAT. On the other hand, supplies made to customers in countries outside of the UAE are not subject to the VAT charge.

Supplies of digital services, such as streaming music and video, online gaming, software downloads, and web hosting, are also subject to VAT. These services must be charged at the applicable rate of 5%, regardless of whether they are delivered electronically from within the UAE or from abroad.

Businesses selling goods over the internet ought to charge VAT on their supplies if they are delivered to customers located within the UAE. The rate of VAT applicable to these supplies is 5% and must be clearly displayed on all invoices and receipts.

Should Amazon Companies Provide Tax Invoices?

All UAE businesses must provide tax invoices for goods or services provided to customers, including those sold through Amazon.

The Consumer Protection Department of the UAE Ministry of Economy requires all businesses to register for VAT and provide invoices, including that selling through Amazon. If a company fails to comply with these requirements, it could face serious penalties, including fines and other sanctions.

Ahmad Al Zain, Tax Advisor –  Farahat & Co

Ahmad is an accomplished legal associate with more than 5 years of experience, he is adept in navigating the complex tax codes at federal, state, and local levels. He has an immense aptitude for conducting tax investigations and tax litigation. He is well-versed in offering expert tax advisory and handling tax arbitration procedures in international and local jurisdictions. Further, he has comprehensive expertise in drafting a wide scope of tax documents and negotiating intricate tax disputes with the Federal Tax Authority.

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