Tax Registration Dubai is not just a bureaucratic process, it’s a crucial step for taxpaying entities to stay compliant with the latest changes to Federal Decree Law No 7/2017 regarding Excise Taxes within the United Arab Emirates through Ministerial Decision No. 108/2023. This blog provides comprehensive guidelines and requirements that Taxable Persons must follow when completing tax registration. It also sheds light on situations where taxpaying taxpayers may be eligible for exemptions, have rejections, or face cancellations during Tax Registration. Furthermore, it delves into the role of tax consultants in Dubai and how they can streamline your tax registration process.
Demand for Tax Registration:
The Taxable Person is expected to adhere to specific requirements and be subject to specific guidelines for registration in the following manner:
- Applying and Compliance
- Quick Response
- Effective Date
- Financial Guarantee Adjustment
- Warehouse Keeper Registration
Understand the conditions for exemption: The authority can exempt an individual from tax registration if they can prove they are not planning to import or export Excise Goods out of a Designated Zone for regular use. This exemption is granted based on specific criteria and can have significant implications for your tax obligations.
The term “On Regular Basis”: “regularly” refers to the importation or taking of Excise Goods outside of the designated Zone greater than twice per six months.
Notification of Changes: Individuals who are exempt from tax registration are required to inform the authority immediately within 20 days if something changes that requires them to be registered for tax.
Permanence of Exemption: If an individual no longer satisfies the exemption requirements, the authority can register them as taxpayers when they stop fulfilling them.
Tax Payment: If an individual exempt from Tax Registration must pay tax on the import of Excise Goods, they must pay the tax before or when importing the item, together with the methods the authority determines.
Rejection basis: The authority may refuse Tax Registration applications if it determines that the applicant doesn’t wish to undertake the actions they are required to perform or if they do not provide the details and information they must provide.
Reasons for request cancellation: If you want to cancel your tax registration, you must apply to cancel taxes within 30 days of the day you cease to be responsible for taxes, such as the stockpiling of excise-related goods or producing and imports. However, you must be patient for at least six months following your registration date to request cancellation, except if the authority accepts a different timeframe.
How to apply for cancellation: If you want to cancel your tax number, you must apply to the authority with all the information required and supporting documents. The authority will examine your application and determine whether to accept or deny the application within 20 days. The authority must inform you of its acceptance or rejection decision within five business days.
What is the registration request rejected? The authority could deny your request to revoke your tax registration if you cannot establish a tax obligation and haven’t completed the six months from your registration date.
When to register for tax: You must apply for tax registration before the date the authority proclaims to be the beginning date for the tax. This is when the tax becomes effective and applies to the taxpayer’s tax-deductible activities.
Consequences for not registering for tax: If you do not apply for tax registration before the commencement date, the authority can automatically register you starting on that date. This means that you’ll be tax-liable at the time of registration regardless of whether you didn’t apply for registration. It’s important to understand these implications to ensure you meet your tax obligations.
Dubai tax consultants are the best option for your business if you want perfect results. ebs Chartered Accountants are the top tax consultants if you wish to register for tax in Dubai and consider all its obligations. Their expertise and guidance can give you the confidence you need to navigate the tax registration process effectively.