Intricacies of Designated Zone in UAE and it's VAT and Customs Obligations. Buy Now!!

Mohammed

Dear Sir

We are registed as a group of company in FTA., now one of company does not have sales at all and all stock has been transferred to parent company ., license not cancelled due to employees visa purpose. 

Can that company continue in group , group revenue is above threshold or i have to deregisted that company after removing it from group.

FTA threshold counted as a group or all individual company have to meet threshold amount..

Thank you very much

Regards

Mohammed 

Replies
SAJITH NAIR26/10/2021 10:25:10

The Law does not specify that the individual members should meet the threshold requirements to continue as part of the Group. However this could pose an issue eventually at the time of removal of this member or de-registration of the tax group. If this member previously had an individual TRN, then on de-registration or removal from the group, this individual TRN would be re-activated. Further, if this member does not meet the threshold, the individual TRN needs to be de-registered, at which time, a penalty for delayed de-registration can be imposed.

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Murtaza02/11/2021 13:57:00

is it sufficient if we make around 190000/- amount of bill (Above Voluntary threshold) in any calendar month so that to fulfill statutory requirement.

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SAJITH NAIR03/11/2021 10:21:22

If the Company makes taxable supplies of AED 187,500/- or above in a 12 month period (yearly) then it will be meeting the criteria to retain the VAT registration

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Murtaza04/11/2021 20:23:06

noted.. thank you very much for your reply..

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