VAT is Value Added Tax or good and services tax. It is a consumption tax applicable on all goods and services collected incrementally on the basis of the value of the goods and services. If you have an active business in production and sales then VAT registration in Dubai is an important requirement as of today. You will be eligible for the return of VAT once you have done VAT registration in UAE. Once you are VAT registered you will be charging VAT for sales of goods or services, submitting VAT returns and keeping VAT accounts and records. VAT returns needs to be filed once every quarter. VAT return is a formal document that contains details about the VAT liability of a person, the tax paid by him etc. This document is used by the government to maintain a proper taxation system.
Vat Registration Services in Dubai, Abu Dhabi, UAE
As per the Federal Tax Authority, the criteria mention that any business with taxable supplies worth more than AED 375,000 needs to go for VAT registration Abu Dhabi and Dubai. Businesses with taxable supplies worth more than AED 187,500 and less AED 375,000 have an option of opting for voluntary registration for VAT. This option is to provide an opportunity for startup businesses to register for VAT while they still haven’t generated any revenue.
The current VAT rates are 5% which to be charged on certain goods and services in Dubai. Non-taxable goods and services will not be charged.
With the Cabinet Decision No. 40’s release, the violations for non-compliance and respective penalties are all listed in its provisions. Customers may also lose confidence in the business that does not comply with the laws of the land, hence the impending sinking of the business. VAT registration would make your business eligible for charging tax on the good or services provided by you.
After VAT registration has been done for your company not only would you be providing taxable supplies of goods and services but you also need to file VAT return periodically as well as prepare audit reports. These file returns are required for documentation purposes by the government to maintain a record for proper taxation systems.
We Pivot International Accounting Solutions, one of the leading Audit firms in Abu Dhabi, Dubai, UAE provides you with various services that take care of your various accounting and taxation process. The VAT registration service in Dubai are managed by a team of professionals that make sure you are provided with the best services at a very minimal cost. There are various requirements that need to be followed by various businesses to be VAT compliant and to provide taxable supplies of good or services. We follow these requirements during VAT registration to become VAT compliant.