Update. Dubai, UAE: Federal Tax Authority Has Issued Clarification On VAT Registration Of Sole Establishments


UAE Government relentlessly working on making the business climate perfect in the UAE. Now, according to the recently issued clarification by FTA, a natural person owning a number of sole establishments needs to obtain only one VAT registration for all its sole establishments and does not require separate VAT registrations for every establishment.

In a case when a person owns more than one sole establishments, the value of supplies made by all its sole establishments must be aggregated to assess.

Any VAT registrations received in the past аre not required. For any future VAT registration applications, the applicants must conform to the position stated in the Clarification.

Please note that the Public Clarification does not apply to a One-Person Company LLC or other similar legal entities, which are seen as distinct and separate legal persons from their owners (unless the applicable legislation treats such entity and the natural person as the same person). A company cannot own a sole establishment.


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