What is VAT?
VAT stands for Value Added Tax. VAT registration is a process that lists your business with the federal government, in the case of Dubai FTA. It means that your business is listed as active in production and sales. Once your business is registered with VAT, you can charge VAT on any goods and services that you offer. Your business can get VAT refunds; you can compete with major industry players in Dubai if you have the VAT number, your business will be open to new business opportunities and more. it is why if you have a business in Dubai, make sure that you get registered for VAT.
It is not easy to manage a business in Dubai. If you have a business registered in Dubai then you might face a lot of financial issues. Also, if your business if your taxable supplies and goods exceed AED 187,500 per annum. Also, if your company’s turnover is more than AED 375,000 you need to get registered for VAT. For that, you need to know its importance and also hire the best VAT consultants in Dubai. Without the help of consultants, you cannot proceed with the VAT registration process. There are so many things that you will not understand such as the Dubai laws, rules and regulations for taxes and starting the business, etc. there are a dozen documents that are needed for the VAT registration process.
Importance of VAT Registration in Dubai
There is a lot of importance for VAT registration in Dubai. It will boost your businesses’ profile. If you have a large business and you want to avert the financial penalties, then getting VAT is a must in Dubai. If you have plans to start a small or large business in Dubai, you need to register your business under the Dubai VAT laws. Understanding Dubai’s market and VAT laws are not easy. It is why you should look for hiring the best and the most reliable VAT consultants in Dubai. Even the VAT registration process is not easy to understand, without professional help.
VAT Registration Process in Dubai
Before you understand the VAT registration, you should know if your business is eligible for VAT registration or not? VAT registration depends on the income that your business generates. The business must apply for VAT registration if the business has taxable goods and supplies worth more than AED 375,000. If the business does not get a VAT registration if it falls under this category, it will be penalized by the FTA. If your business has taxable goods and supplies between AED 187500 and AED 375,000, you can apply for the VAT but it is not mandatory. The FTA will not impose any penalty for not having a VAT number. The businesses that have taxable supplies and gods who less than 187500 do not require VAT.
To start the VAT registration process in Dubai you need to fill an online VAT registration form. You also need to attach all the required documents to ensure that the FTA registers your company for VAT. Not many business owners know how to do that. It is why they look for VAT consultants in Dubai. These consultants know the process for registration. They have experience in helping several other companies register for VAT and thus they know what the requirements are. They will start the process and accurately help you fill the form so that your application does not get rejected by the FTA. These consultants know the laws too.
The documents that you need to register for VAT in Dubai are: