- VAT Registration Requirement: Amazon sellers using Fulfillment by Amazon (FBA) in the UAE must register for VAT, which applies from the first sale for non-resident sellers, while resident businesses must register if their annual taxable turnover exceeds AED 375,000 (around USD 100,000).
- VAT Rates and Filing: The UAE has a standard VAT rate of 5%, with zero-rated and exempt categories for certain goods and services. VAT returns are typically filed quarterly, with larger businesses potentially required to file monthly, all conducted electronically through the Federal Tax Authority (FTA) portal.
- Compliance Risks: Non-compliance with VAT regulations can lead to significant penalties, including fines for late registration and filing, as well as potential suspension of Amazon seller accounts, emphasizing the importance of adhering to UAE VAT rules for maintaining active seller status.
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