VAT is an expense that applies on use of all administrations and products. GCC Government has adopted this taxation system from 1st January 2018. It will be implemented almost all goods and services apart from food items, healthcare, and education. In start tax rate is very nominal i.e. five percent. End-user is mostly affected by the implementation of tax however business setups have to make certain changes to the process and procedure to comply with the legal requirements implemented by the government effective from 1st Jan 2018.
All businesses with annual revenue of Dh 375,000 or more are required to submit their VAT registration online applications within 30 days of being required to be registering. As per the regulatory Authority Federal Tax Authority Registration (FTA), all businesses in UAE 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.
Registration will be mandatory in case revenue limit cross AED 375,000, if turnover is greater than AED 187,500, but didn’t exceeds AED 375,000 then optional or voluntary registration should be done.
VAT Registration Process
RKCJ & Co. can assist you to go through a simple process to start with VAT in UAE.
Requisites in VAT calculation and VAT Accounting system