VAT (Value Added Tax) is an indirect tax initially with a very nominal rate i.e. 5%, applicable for most of the goods and businesses.
Though UAE government has exempted food items, education and healthcare services from VAT but people can notice a little rise in their cost of living.
However, it needs to be considered that VAT will not strain the wallets much but allows the high living standards not only to remain high but improving.
To comply with VAT and related legal requirements businesses need to make changes in their existing processes.
Companies have to ensure that their accounts or records are well managed according to the new VAT regulations implemented by the government effective from 1st Jan 2018.
If a business in UAE exceeding AED 375,000 with the supplies and imports of goods/services subject to tax then it must register for VAT as per the Federal Tax Authority.
As per FTA, all businesses must ensure the recording of their financial transactions, apart from that VAT registration requirements have done and ledgers are updated in time to avoid penalties.
There are a couple of documents required that come with registering with the VAT in UAE. The nature of the organization matters in registration.
For a businessman applying for a VAT certificate as an individual, the following are needed:
Applicant’s request letter with signature
Applicant’s resident permit
Applicant’s passport copy
For businessmen registering as an authority, the requirements are as follows:
Degree copy
Application letter with authorized signatory
Act of incorporation copy
The requirements for a Dubai-based business registering for VAT are as follows:
Applicant’s application letter signed by the company’s authorities
Trading license copy
Get Expert Assistance from Trusted Outsourced VAT Return Filing Professionals
The UAE government requires all businesses to file VAT returns. It is a directive that companies must comply with. The VAT tax is an official tax document that is submitted to the Federal Tax Authority. The UAE taxation law requires VAT returns to be filed quarterly.
Typically, the tax document contains information on tax recoverable input and tax due output, as well as the net VAT applicable. The taxable individual or a person elected by the taxable party may file VAT returns.
In other words, corporation tax return specialists or legal agents can file VAT returns on behalf of the taxable party.
And because the law allows individuals and companies to hire Dubai vat filing agents, it is vital to work with VAT return services at reasonable rates and has the knowledge and expertise to manage VAT return filing based on UAE VAT laws.