As the United Arab Emirates has seen an implementation of VAT from January 2018, it is important for certain businesses to get prepared for VAT registration. If you do not know how to register for VAT in UAE, this is the right place for you. 5% VAT will be applied to the goods and services with effect from 1st January 2018. The VAT will be ultimately charged to the customers. The value added tax is already active in most of the countries worldwide.
The complete procedure of registering for VAT in UAE is shared in this post. The value added tax will be applied to the majority of dealings. There are some exemptions, though. Businesses who are having an annual turnover above a certain specified limit have to get VAT registration. The threshold for registration will be Mandatory for AED 375,000 above and Voluntary at least AED 187,500.
What is VAT
The value added tax is levied on the supply of goods and services which are purchased or sold. Ultimately the end-user incurs the tax. It is an indirect commercial tax also known as general consumption tax. Before UAE joined, the VAT is already active in more than 150 countries of the world as a major commercial tax.
UAE VAT Registration Procedure
The businesses can register for the VAT in Dubai and other regions of the country using the online services. The online portal of the Ministry of Finance known as eservices.mof.gov.ae. The VAT registration is facilitated to an individual, a company or any other commercial authority. The procedure is similar for all the different entities. However, the types of documents required for the VAT application in UAE differ for individuals and corporates. The basic document required includes the proof of business and a request letter signed by the individual or a company authority. For any queries related to VAT, you may visit the website of the Ministry of Finance at https://www.mof.gov.ae/En/budget/Pages/VATQuestions.aspx
The firms registered for value added tax in Dubai are required to follow certain records. The authorities will be monitoring the details of the business records and transactions. We are guiding and assisting businesses with VAT related book keeping and financial management. Punctual return filing will also be extremely significant after full-fledged implementation of the value added tax, non filing of which would call for penalties.