The UAE Ministry of Finance (MoF) has announced the introduction of the Value Added Tax (VAT) across the country, effective January 1, 2018.
VAT is a form of indirect tax on the consumption or use of goods and services applied at the point of sale, and charged on applicable transactions.
A registered business collects the VAT charged to customers on supply of goods and services, and pays VAT on goods and services purchased from its suppliers. The difference between the VAT collected from customers and the VAT paid to suppliers is then remitted to the Federal Tax Authority (FTA).
VAT will be introduced across the UAE at a standard rate of 5%. Certain supplies of goods and services will be subject to a 0% VAT charge, while some are exempt (Refer Federal Decree-law No (8) of 2017) and the Executive Regulations for more details click here.
VAT is a general consumption tax, and will apply to the majority of transactions of goods and services, unless specifically exempt by law. TNT will apply and collect VAT, where applicable on its services from January 1, 2018. Rates and charges on all existing TNT contracts are VAT exclusive.
A business must register for VAT if their taxable supplies and imports exceed the prescribed “mandatory registration threshold.” Additional information for businesses can be found at
VAT-registered businesses generally:
In order to share your Tax Registration details with TNT, please download the template available at tnt.com/ae/vat/, fill in the details, attach the completed template and send it to email@example.com along with the supporting documents.
In order for us to continue serving you following the implementation of VAT on January 1, 2018, the following tax registration details in the template provided by TNT are required:
The Tax Registration Number is important for 2 reasons:
TNT requires a copy of the tax registration certificate to verify the information provided, and avoid any administrative errors in invoicing.
The details you previously provided need to be updated in the TNT template and should be emailed to firstname.lastname@example.org along with a copy of the Tax registration certificate (if available), to ensure they are entered into our systems correctly.
If you have submitted incorrect information, you can re-submit the correct details along with the supporting documents to email@example.com.
Yes. You can submit your Tax Registration Number with the supporting documents to firstname.lastname@example.org when you receive them.
Name of the entity: TNT (UAE) (L.L.C.)
Registered Address: Business Avenue Building 4th Floor, Port Saeed, Deira, PO Box 15321, UAE
Tax Registration Number: 100009354000003
For a copy of TNT Tax Registration certificate please contact your TNT Territory Manager or write to email@example.com
No. Additional contracts will not be needed. Rates and charges on all existing TNT contracts are VAT exclusive. TNT will apply and collect VAT, where applicable on its services from January 1, 2018.
Yes, VAT applies on goods imported in the UAE (subject to certain exemptions) irrespective of where you are located. VAT charges on goods imported are primarily the liability of the importer or consignee. Depending on the arrangement between you and the importer or consignee, you may be liable to pay the applicable VAT charges in the UAE.
You can claim credit on VAT paid in the UAE only if you are registered with the FTA with a Tax Registration Number.
The FTA is expected to release a decision listing which Free Zones are specifically defined under the law as “Designated Zones.” VAT will not apply to goods imported into the Designated Zone from outside the UAE.
If you do not pay VAT on import of goods, the goods are not likely to be released by Customs Authorities. There could also be penalties for non-compliance as per the VAT regulations.
In case of any additional questions please contact your TNT Territory Manager or write to firstname.lastname@example.org.
Common VAT Agreement of the States of the Gulf Co-operation Council: