Article 13 of the decree-law along with the article 7 of executive regulation specifies the mandatory threshold of AED 375000. Clause 1 Article 13 specifies that every person who has a place of residence in the state or an implementing state shall register if:
- The total value of supply exceeds the threshold limit over previous 12months.
- Where the threshold limit is expected to cross in the next 12 months.
Clause 2 Article 13 specifies registration requirement for non – residents where the supplier of goods or services
- Does not have a place of residence in state or an implementing state.
- The non-resident supplier is not already registered
- No other person is obligated to pay the due tax on these supplies in the state.
Shall apply for registration under VAT
- A residing in India supplies goods to Mr. B, C, D, E (non–registrant dealers) in Dubai of AED 100,000 each (total of AED 400,000). Here, A is required to obtain the registration pursuant to clause 2 of article 13 of the decree law. Since no other person i.e. B, C, D or E is obligated to pay the due tax on these supplies as the amount of supply for each dealer is less than the mandatory threshold limit of AED 375,000.
- A residing in India supplies goods to Mr. B, C, D, E (non–registrant dealers) in Dubai worth AED 50,000 each (total of AED 200,000). Here, no one is required to obtain registration since the threshold is not exceeded either for non-resident or for the resident.
- A residing in India supplies goods to Mr. B of Dubai worth AED 400,000. Here Mr. A is not required to obtain registration because Mr. B shall be required to obtain registration since he is crossing the threshold limit of mandatory registration (pursuant to clause 1 of article 13)
Time limit for registration:
The dealer should make an application to the Authority within 30 days of being required to register.
Date of grant of registration:
For residents where the value of total supply exceeds threshold limit:
- With effect from the first day of the month following the month in which the person is required to register.
For residents where the value of total supply is expected to cross threshold limit:
- With effect from the date on which there are reasonable grounds for believing the person will be required to register.
- From such earlier date as may be agreed between the person and the authority.
For non- residents:
- With effect from the date on which he started making taxable supplies in the state.
- From such date as may be agreed between the person and the authority.
Liability in case of late registration: Supplier shall be liable to account for and pay the tax chargeable on all the taxable supplies and imports made before registering.
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