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VAT registration of ‘Sole Establishments’- New Amendment

Please be informed that Public Clarification VATP026 replaces Public Clarification VATP021.

A natural or legal person may own a number of sole establishments. There has been uncertainty on whether each sole establishment needs to obtain a separate VAT registration or whether all such establishments should be included under one VAT registration.

This Public Clarification clarifies the VAT registration obligations of a person in respect of its sole establishments. Note that the term “person” refers to a natural or legal person.

A sole establishment (also referred to as sole proprietorship) is a form of business that is 100% owned by a person. A sole establishment does not have a legal personality that is independent of its owner and is accordingly considered to be the same person as to its owner. It should be noted that, for VAT purposes, a One-Person Company LLC or other similar entities are not considered sole establishments, and are seen as a distinct and separate legal person from their owner (unless the relevant applicable legislation state otherwise). For more details download the entire rule here.

How can we help?

If your business in DMCC/JLT Dubai and is looking to understand more about the taxes in the country and conduct an audit for your company, then you can take the assistance of Alya Auditors– Chartered Accountants. Alya is a reputed name in the field of Auditing and Accounting and is also a certified firm in almost all the free zones in the UAE including DMCC, DWC, DWTC. We will assess all the needs and requirements of the company and accordingly provide a solution. We can also help you professionally by registering for your TRN and monthly accounting as per the latest UAE rules and file your VAT returns thus ensure you keep your books of accounts error-free and make sure that you won’t get any  VAT penalties from the FTA.

For any more details on the services provided by Alya Auditors -Chartered Accountants, feel free to Contact Us. We will be happy to help.

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