MASTERKEY BLOG

What is VAT and what how does it affect my relationship with Masterkey?

VAT in the UAE is just around the corner and we are ready for it! It’s likely that you are also  preparing for full compliance as of January 1st 2018 so we’re here to help. Learn more about VAT below.

What is VAT?

Value Added Tax (VAT) is an indirect tax that is being introduced by the UAE Government, which will be payable by both business and Individuals.

When will the VAT go into effect and what will be the rates?

VAT will be introduced across the UAE on 1 January 2018 at a standard rate of 5%.

How will VAT apply to Masterkey services?

VAT will apply to services at a rate of 5%. Further details regarding VAT application on our services will be made available in the coming weeks.

Is it compulsory to pay VAT?

Exceptions to VAT are only by law, and these are published by the Federal Tax Authority. There is a possibility for business owners to claim back their VAT payments, provided they have registered for VAT and meet the requirements. For further details, please visit www.tax.gov.ae.

I’m not based in the UAE, do I get charged VAT?

We're looking into answering this question. Drop an email to your account manager and we'll get back to you.

Will Masterkey charge VAT on my invoices?

From 1st January 2018, all services provided by Masterkey shall have VAT applied upon their charges / fees in compliance with the provisions of the law and its Executive Regulations. Transitional arrangements will apply for contracts and/or services which span 1st January 2018.

How can a business register for VAT and receive a Tax Registration Number (TRN)?

Businesses can register for VAT tax through the e-services section on the FTA website. However, you need to create an account first. For more details about VAT tax registration, please read VAT Registration User Guide.

I am a Business owner. I have registered with the UAE Federal Tax Authority and have received my certificate and Tax Registration Number (TRN). Do I need to share this with Masterkey?

Yes, once you receive your Tax registration number (TRN) you are required to send this to us. This is important for us to update your account details, and ensure that your TRN is reflected on our monthly tax invoice. The inclusion of your Tax Registration Number (TRN) on our invoice is required for you to claim back the incurred VAT within your VAT return.

Where can I get more information?

We suggest you visit Federal Tax Authority website Federal Tax Authority website for more information.

What is Masterkey’s Tax Registration Number?

Masterkey has registered for its TRN, however the status is still pending. When our TRN is available we will post it here.


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