0

Enter your keyword

Typing centers to take advantage of VAT implementation

Our Insights in the financial market

Typing centers to take advantage of VAT implementation

Typing centers to take advantage of VAT implementation

Submission of documents on the Federal Tax Authority’s website is free of charge

With less than one week to go before the implementation of value-added tax (VAT) in the UAE, typing centres are charging as high as Dh1,000 for online registration of companies. Though submission of documents on the Federal Tax Authority’s (FTA) website is free of charge, smaller companies are seeking the help of typing centres to fill the form to get the tax registration number (TRN) and submit related documents.

However, most typing centres are demanding between Dh100 to Dh400 to register each limited liability company (LCC). But if an applicant intends to register more companies, the typing cost increases accordingly. “Typing centres are demanding different rates from Dh100 to Dh1,000. It all depends on how successfully you bargain with them. One of my friends paid Dh1,000 for online registration and document submission. The price was too high, so I decided to fill up the form myself. I knew it was free,” says Najam us Saqib, an auto parts dealer with businesses in Dubai and Ajman.

Shameer Abdul Kareem, who works at Al Maha Typing Centre in Al Mamzar, Dubai, said the typing cost for each company is Dh100.

He said it takes some time for online registration because too many documents need to be attached. “It can take more than one hour because there are around 10 steps such as adding details about the company, sponsors, attaching documents, filling in VAT details, etc.” This week, the FTA said it was issuing provisional tax registration numbers (TRNs) to businesses that had commenced registration after the December 4 deadline to help achieve tax compliance ahead of VAT implementation on January 1. Businesses that fail to register with the FTA will face a penalty of Dh20,000.

Tax registration can be done through the FTA’s website, available 24 hours a day, seven days a week. The website also provides guidance on how to complete various transactions seamlessly. A business will be required to register if the total value of its taxable supplies made within the UAE exceeds the mandatory registration threshold of Dh375,000 over the previous 12-month period. A business may choose to register for VAT voluntarily if their supplies and imports are below the mandatory registration threshold, but exceed the voluntary registration threshold of Dh187,500.

Noushad Hussain, a typist at Mamzar Document Typing and Clearing Centre, said the charge is Dh400 for each company’s VAT registration. A worker at a Dar Al Nasr typing centre said the unit does not undertake VAT registration for a group but only for a single company because it takes a lot of time.

“We do VAT-related typing for only a single company and charge Dh100. You need to bring in a trade licence copy, Emirates ID, passport copy, visa page copy, Tejari copy and partner’s documents. If you give us the documents today, we’ll return them tomorrow,” a worker at the typing centre said.

Another typing centre on Jamal Abdul Nasir street in Sharjah demands Dh200 for VAT-related typing for each LLC.

This article originally appeared on Khaleej Times

No Comments

Post a Comment

Your email address will not be published.