The VAT was implemented to the people of UAE on 1st January 2018. It has brought a huge change in the people and the way people are charged with taxes. Now, the people in the UAE will not only have to get registered for VAT in the UAE but also pay it on time.
VAT law comes under the Federal Decree No. 8 of 2017. Federal Tax Authority is responsible for making every taxable person get registered for VAT and pay it responsibly.
The percentage of Implemented VAT Is 5%. Every taxable good and service will be given with additional VAT tax and if someone doesn’t apply it, he will be punished.
Why did VAT get implemented?
The VAT has been implemented in the UAE in order to disburden the government from being dependent upon the oil and other hydrocarbon resources. This will bring a revolution in the UAE because the payment gained from VAT will be used for the welfare of UAE residents.
Vat registration in UAE
Registering for vat is very important for all the businesses because if they do not, they will be charged with high penalties and fines.
Do all businesses need to get registered for VAT?
All the businesses who cross a particular threshold in their annual turnover will be eligible for VAT registration. Companies who do not cross the threshold can also get registered for VAT voluntarily.
Complying with the rules and regulations of VAT is really important for the businesses in the UAE. if anyone tries to escape paying VAT, he will be charged with fines and huge penalties when got caught. So, it would be better for all the people to get registered for VAT.
there is no doubt in the fact that in UAE, there are a number of foreign businesses. These foreign businesses also need to comply with VAT rules. If any of the businessmen are not aware of the rules of VAT, they may take the help of VAT consultants in UAE. VAT consultancy services may make the companies stick to the legal boundaries without crossing them ever. This will make the taxation issues very easy for the companies as they won’t have to stress over the tax issues then.
Have a look at the annual turnover of your company and register for VAT accordingly.
Get VAT compliance for offshore companies
Offshore companies are similar to the free zone companies because they come under the free zone authorities. Offshore companies are different from onshore companies and this is what makes the VAT registration and application processes different for both. The VAT consultancy firms may help the offshore companies in getting guidance regarding the interpretation of different implementations. Offshore companies should really get registered for VAT so that they may stay away from getting into some serious troubles.
The standard rate of VAT imposed in UAE is 5%. All the offshore companies are therefore advised to register for VAT to remain on the safe side and run their operations in a remarkable way.
If you want to learn more about vat registration click here.
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