21st December 2017.
Dear Valued Customer,
Subject: Introduction of Value Added Tax in the United Arab Emirates.
Reference: Flexigistic General Warehousing and Freight Forwarding LLC; TRN is 100351369200003
As you would be aware, the United Arab Emirates (UAE) Government has announced the introduction of VAT from 1 January 2018. Some of the important features of UAE VAT law are mentioned below:
• All UAE businesses, making taxable supplies above AED 375,000 in the past 12 months, or anticipate to make taxable supplies above AED 375,000 in the next 30 days, are required to register for VAT.
• The rate of tax would be 5%.
• VAT is applicable to almost all goods and services.
• A valid Tax invoice which meets the specific requirements as mentioned in the VAT Law or Executive Regulations must be issued where a taxable supply has been made. Any other forms may also be subject to modifications.
• In accordance with the VAT rules, any supplies or performance of obligations on or after the date the VAT Law is implemented will be subject to VAT, regardless of when invoices were issued or payment was received.
• Other areas affected by rules set by the UAE VAT Law.
Accordingly, and if applicable, Flexigistic General Warehousing and Freight Forwarding LLC will be required to account for VAT on its supplies of goods and services to you effective 1 January 2018. Where VAT applies, Flexigistic General Warehousing and Freight Forwarding LLC will be issuing valid Tax invoices in compliance with the VAT rules.
In order to take the first step such that our vendor-customer relationship is VAT compliant, we request you to please send the details mentioned in Form-A by 31st December 2017.
Where you are a VAT registered business utilizing our goods or services for taxable activities, you should be entitled to an input VAT deduction – however, we recommend you consult your VAT advisor.
Any changes or requirements during the transition period will be communicated immediately to all concerned parties. We would like to emphasize that for most businesses, VAT should not be a direct cost and that any VAT we are required to charge on our supplies to you should be recoverable as an input VAT deduction upon receipt of a tax invoice from Flexigistic General Warehousing and Freight Forwarding LLC. We have added the details of Flexigistic General Warehousing and Freight Forwarding LLC for your reference.
If you need any clarification, please feel free to contact us on 0097148836866 or alternatively you can send your queries on this email@example.com
We look forward to your utmost cooperation throughout the VAT implementation.
Thanking You Management Flexigistic LLC