UAE's Federal Tax Authority (FTA) has added a new Turnover Declaration Form for businesses to declare their turnover from 2017 to date.
Some existing VAT registered businesses have raised a concern about the applicability of the new turnover form. So to clarify, there is no need for the existing registrants to submit the turnover declaration to the FTA as there is no notification to this effect yet.
Generally, the business applying for the VAT registration has to fulfill the turnover criteria for the last 12 months or in the next 30 days. So what makes the FTA ask for the turnover details since 2017? The logic behind such a requirement is simple - to assess whether the applicants have done timely registration or not. The FTA wants to evaluate when the business met the registration criteria and was obliged to register. Accordingly, all the new registration applications are requested by the FTA to provide financial information since 2017.
The turnover declaration letter only standardizes the information collection process for the FTA's ease.
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