VAT (Value Added Tax) is a goods and services tax that eventually raises the cost of a particular product or service. It is a type of indirect tax which is imposed on every stage of production. It is levied on the goods and services starting from raw material to the final product finally ready to be delivered in the market.
Talking about UAE, VAT had been introduced on January 1, 2018. The rate of Value Added Tax in Dubai is 5 percent currently which will help the UAE government to generate extra income to further utilize it in improving public services.
There are certain things that you need to keep in mind while the VAT registration process. These are discussed below.
Please note that the VAT registration process is available online and the submission of the above-mentioned documents will be initiated through the FTA’s online portal.
Talking about VAT in UAE, there is a certain criterion for VAT in which a business must register for VAT if the taxable supplies and imports of the business exceed AED 375,000 per year. The Dubai government has made it optional for VAT registration if the businesses exceed AED 187,500 per annum. So do remember that if your business is not exceeding the criteria of AED 375,000 then you don’t have to register for Value Added Tax in Dubai.
No matter if you are starting a business; VAT registration in UAE is a continuous process. So once you are in the bracket for VAT registration in UAE, you will have to abide by the rules and follow this continuous process.
The business can start with the transactions as soon as it gets a TRN (tax registration number). If you are using the FTA website in Dubai then this TRN will act as a verifiable. Please remember that the VAT registration certificate is not important for trade or a business as the TRN will serve the purpose.
Another important point to be noted and remembered is that in Dubai if your business is not registered with FTA, you will not be allowed to have your goods and services taxed. It will not be of any benefit for you because eventually, you will have to pay taxes on the imported goods. There are heavy fines if any company violates this as per VAT laws of UAE. Therefore, it is economical and advisable for all the businesses in the UAE to get registered with FTA and take the benefits for VAT registration.
PRIME QUANTUM SERVICES is indeed one of the leading financial advisors in UAE. The employees are experienced and have the best training in terms of the work they serve. Along with this, the dedicated team will guide you regarding the VAT registration process and will help you remember the most important things that you need to keep in mind while the VAT registration process.
Adding to this, the PRIME QUANTUM SERVICES is famous for the expertise and the knowledge that the team members have. They are efficient enough to provide VAT consultancy services and they can surely help you handle the business efficiently.