The imposition of Value Added Tax (VAT) recently in UAE has a considerable impact on businesses. If you are still unaware, the implementation of VAT requires the companies to pay 5% as per the standard rate tax except for the exempted business with effect from 1 January 2018. The tax was first implemented in the Kingdom of Saudi Arabia followed by the government of the United Arab Emirates in coordination with GCC countries. So, if you are running a business in any city in the UAE, you must register for VAT. However, many companies are facing issues regarding fulfillment VAT registration requirements in UAE as they are not familiar with the process and methods. In such a situation it is better to hire the best VAT consultancy in Dubai to get all essential information and consultancy related to VAT registration and payment methods. Besides this, consider reading this post to get instant information regarding VAT regulations! VAT Registration Requirements in UAEMany UAE based businesses are ignoring the importance of VAT owing to lack of proper knowledge. It is true that a few businesses are exempted from tax, but others have to pay. However, registration criterion may be the same for all companies operating in the UAE. The registration for VAT is expected to be done based on the size of business as recommended by the Federal Tax Authority UAE. It is the registrant body for VAT also. The process is divided into three phases. So, it is better to get adequate information about UAE VAT registration requirements to avoid any penalties or deductions. Consider the given information for detail: Mandatory Registration for VATIf the annual revenue of a business organization is equal or greater to AED 375000, VAT registration is compulsory. The company should comply with tax regulation by registering under the respective department of the FTA department. Voluntary Registration for VATThe business companies earning more than AED 187,500 or more should voluntarily register for taxpaying under the VAT. VAT Exempted BusinessesIf you are confused about VAT registration, consider that if your business revenue is less than the amount AED 187,500, you are exempted from VAT registration. VAT Registration Documents RequirementsNot every business organization pays attention to perform accounting and booking keeping activities especially the small companies and freelancers. But, it is imperative to understand that VAT registration requires the businesses to have the following documents:
Final ThoughtSumming up, preparing for VAT registration requires the companies to be highly pro-active in maintaining tax records and other documents. This is not a piece of cake because you have to provide proof of every decision made regarding the financial management of businesses.
It is, therefore, suggested to hire the best VAT consultancy in Dubai for error-free preparation of all documents to fulfill VAT registration requirements in UAE. Don’t forget to provide the nitty-gritty of your business to get help by the experts comprehensively!
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10/13/2022 07:18:55 am
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