أسئلة وأجوبة
VAT registration for a new company in the free zone
Dear Mr Elnaggar,
Please, I have just created a company in Ajman Free Zone and I have enrolled for VAT, but it got rejected because I didn't reach the mandatory threshold of AED 187000 and I have to provide evidence.
So, my question is how can I invoice my customer if I don't have VAT number yet? Also, how can I recover the VAT that I m paying to my supplier?
Thanks in advance
Dear Questioner,
Thanks for your inquiry.
Please note that the AED 187,000 is not the mandatory threshold to register, but it is a voluntary threshold.
Which means, this is the minimum turnover you can show to get accepted by the Federal Tax Authority as to register for the VAT.
Please note that you are only allowed to Invoice your customers the 5% VAT if you are registered and you have your company's TRN number and a certificate of registration to the VAT issued by the Federal Tax Authority.
Issuing Tax Invoices without being registered is a violation that is punishable by law.
If you have difficulty registering or showing your real turnover to the authorities you may contact us to assist you with such service.
Best regards,
Ahmed Elnaggar
