How And When To Apply For Vat Regitration In Uaeby Vivek Choudhary Nice life
If or when your annual turnover stands £85,000 (the current VAT registration threshold), you ought to register for VAT. However, if you still don't have to register for VAT, you may yearn to consider registering intentionally.
To register for VAT, you ought to implement Revenue & Customs. If you decide to register yourself, you necessitate registering for the vat consultancy in Dubai. However, if you need it, an accountant or an agent can arrange this for you. You should receive a VAT registration certificate within 14 working days. However, it can hardly take longer, so if you require or choose to register, it's a good idea to complete the registration application as promptly as feasible.
The UAE introduced VAT – value-added tax – in January 2018, at the regular rate of 5%. Although VAT will be excellent for the UAE (giving revenue to enhance public services and infrastructure), various business owners grapple with the concept.
Execute mistakes, and you could overcompensate – cutting your working capital, decreasing cash flow, advancing innovation – or underpay – exposing yourself to fines.
The VAT landscape isn’t as complex as it prime seems, though. Here are the four things you need to know to ensure your business is well-prepared.
Not every company needs to pay VAT.
Only companies with taxable supplies and imports exceeding AED 350,000 per year need to register for VAT in the UAE.
You only need to register for VAT in the UAE if your company has more than AED 350,000 each year in taxable supplies and imports. That’s assessed on the basis you either exceeded that limit in the preceding 12-months or you expect to exceed the limit over the next 30-days.
If your taxable supplies and imports fall under this threshold but exceed AED 187,500, you can choose to register for VAT, but you don’t have to.
Knowing when to register – or deciding when to register voluntarily – is complicated. If you don’t write when you should, for example, you’re subject to penalties and fines. Equally, voluntary registration can be positive – opening the door for tax refunds or offset expenses – but it can also be an unnecessary hassle and cost.
Seek advice from vat tax consultant in Dubai to help you understand the nuances of VAT registration. What if your company makes under the threshold most of the year but exceeds the point in last month, for example? What if you predict you’ll exceed the brink but don’t?
There’s also an administrative burden associated with VAT, as you’ll need to complete VAT returns correctly and on time. VAT specialists ensure you’re ticking all the right boxes to maximize your working capital but also safeguard against risk.
Created on Jul 16th 2021 04:08. Viewed 132 times.