VAT & Financing FAQs

Do I need a company bank account if I hold a UAE trade licence?

Yes, whilst it is not a mandatory requirement for new companies without staff, it is strongly advised that you look to open a local company bank account as soon as possible. It is beneficial not only for local business transactions but also once a company does have staff they will be required to be paid through the WPS banking system. Failure to do so will result in a block against the company. There are many local Banks to choose from most of which offer competitive commercial rates.

How do I register for VAT in the UAE? Am I eligible?

It is mandatory to register for VAT in the UAE if the company turnover is AED 375,000 or more. A company can apply voluntarily if the turnover reaches AED 175,000. The Federal Tax Authority has an online portal for VAT registration. For more information visit https://www.tax.gov.ae/registering-for-vat.aspx

Do I have to register for VAT in the UAE?

It is mandatory for a company to register for VAT in UAE if their taxable supplies and imports exceed Aed 375,000/- per annum, or expected to exceed the threshold in next 30 days. A company may voluntarily register for VAT if the taxable supplies and imports of a company exceeds the threshold of Aed 187,500/- per annum.

Does a foreign branch need to be locally audited in the UAE?

Yes to renew MOE license, It is mandatory for foreign companies to submit the audited financial statements of the branch of foreign companies registered in UAE

How can Sovereign PPG assist with VAT?

VAT requirements in the UAE and compliance form part of our outsourced client accounting services in the UAE. Our UAE accounts team can help you to assess your VAT requirements and threshold. We will ensure that all documents are completed on your behalf to register for VAT and then on-going maintenance VAT Quarterly Submissions and Filings.