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The introduction of VAT in the UAE requires Professional Assistance!
M&P Announces the Cooperation with the Tax Law Expert Mr. Markus Bohnen
Published: 25.10.2017 | Dubai, United Arab Emirates
Currently “VAT” is “the” most discussed and yet at the same time the most precarious topic for any company doing business in the UAE. For the time being the only certainty appears to be that Value Added Tax (VAT) of 5 % will be introduced in the UAE to most products and services from 01.01.2018. It seems also clear though that, based on European standards, quarterly VAT declarations will have to be submitted to the competent authority – the Federal Tax Authority (FAT) from 2018 onwards. Uncertainty remains because relevant processes still need clarification as the “Implementing Regulations” have not been released yet. However, one point is definite: All companies should take the preparation for the introduction of the VAT very serious: If anything but, the list of (hefty) fines for violations is already prepared. UAE VAT|Meyer-Reumann
Companies in the UAE are thus well advised to gear up their operation to be fully compliant with VAT requirements from now and seek professional assistance. In order to provide the full spectrum of both legal services and tax related assistance for this implementation M&P has decided to co-operate with Mr. Markus Bohnen of “Steuerbuero Bohnen” (
Mr. Markus Bohnen, the founder and owner of the firm, is a graduated financial economist and tax consultant and previously worked for the Federal German Financial Administration. After the unification of Germany, he was instrumental to implement the tax administration in the former East Germany. Already since 2007, Mr. Bohnen advises clients i.e. operating businesses, branch offices, and individual companies, as well as German citizens, operating and living in the UAE on German related tax issues.
According to Mr. Bohnen, businesses in the UAE should consider the following crucial aspects:
“Along with the introduction of VAT book keeping and annual reports will become mandatory for companies in the UAE. As crucial details of the regulations and provisions are still missing and everyone still only has a partial overview of the legal requirement, currently only speculation on the individual requirements can be made.
However, it is recommended that companies already now consider the following preparation for the implementation of VAT:
  1. A valid trade license/establishment card must be provided for every company in the UAE in order to obtain a VAT number. Formats where individual companies have different trading licenses under one company are problematic.
  2. VAT liability and obligation to register starts from annual sales of 375,000 AED for each business unit.
  3. VAT registration applies to any commercial entity for each business unit. For each of these units, the record-keeping and reporting requirements must be observed.
  4. The standard tax rate is 5%. The software in use in the company for invoicing should be adapted so it can show the tax separately.
  5. VAT requires records that allow an easy and simple verification of compliance with the law. Proper accounts will be a necessity for each company.”
M&P and Mr. Bohnen intend to hold a joint seminar on all relevant requirements and the implementation of these requirements in your company. Participation in the event will be free of charge.
Subject to the publication of the Implementing Regulations scheduled for the fourth quarter of 2017, the invitations will be sent as soon as the Implementing Regulations were released. If you are interested to receive an invitation kindly send us an email to
We are certain that the cooperation of M&P and Mr. Bohnen will offer our Clients the necessary competent support for the implementation of and compliance with all VAT tax requirements.
Source: LexArabiae - Vol. XXI – Issue 4, Oct. 2017 Back to News