registering for VAT:
The Federal Tax Authority clarified the date of February 9, 2021, Abu Dhabi. A natural person who owns a number of individual establishments in regards to registering for VAT must obtain a single tax registration for all individual establishments and not a separate tax registration for each individual establishment.
The Federal Tax Authority indicated that individual establishments are considered a legal form of business. With regard to the ownership of the corporation, she indicated that the sole proprietorship should not have a legal personality independent of the real owner, as there is no difference between the sole proprietorship and its owner and is considered one person.
Within the framework of the Authority’s objectives in introducing people to the tax aspects that need a detailed explanation, this clarification came about registering companies for value-added tax purposes that help people apply tax principles in an easy, simple and accurate manner.
The Authority indicated that this general clarification does not apply to a single person companies (LLC) or other similar entities as they are seen as a separate legal person and independent of their owner and as the legal person cannot own a sole proprietorship.
The authority noted, in an explanation, that all taxable supplies of a natural person are added to his establishment or in the case of owning more than one establishment, all of them are taken into consideration collectively with the aim of determining whether the person has crossed the mandatory tax registration limit of 375,000 dirhams.