Your store will be subject to UAE VAT as of November 19, 2022

[Hyoro14]

I newly  open my company and will be starting the shopify platform from Nov. I haven't reached the UAE VAT criteria yet and not mandatory to get VAT account. My market place is in only UAE not selling to other areas. In this case, how should I do with it? Kindly advise me. 

[Greta]

Hi there, @Hyoro14!

Thank you for your post, I'm happy to share some more information. 

We are now required by law to charge merchants in the UAE VAT on their Shopify bills. Merchants in the UAE jurisdiction will begin seeing this tax on their bills from November 19th, 2022. This only applies to your Shopify bills and does not affect taxes on orders/products.

If in the future you receive a VAT ID, you can be exempt from this tax. You can access the settings related to these taxes in your Shopify admin (Settings > Billing > Tax Registration). There, you will have the opportunity to enter your VAT ID. If you choose the I don't have a VAT number option, or don't choose any option, you will be charged VAT on your Shopify bills.

Please let me know if you have any questions!

[Mahmoodag]

I am having the same issue. I'm not paying VAT this year. we need to sell 350K AED worth of sales to qualify for VAT. we are not anywhere near that 350K AED threshold, why should we be subjected to tax? 

[Greta]

Hi, @Mahmoodag!

Thank you for your question. We are now required by law to charge merchants in the UAE VAT on their Shopify bills. Please note that this won't affect the sales you make or what you charge your customers, but just your Shopify bills. 

Please let me know if you have any other questions!