VAT Registration in Dubai
VAT is an indirect tax levied on the use or consumption of goods and services at any point of sale. The end consumer ultimately bears the cost. Companies and foundations collect VAT on behalf of the government. With the introduction of VAT Registration Services In Dubai, consumers are required to pay 5% on the goods or services they use. With VAT registration services in Dubai, Sharjah, and UAE, you can easily manage the VAT aspects of your business.
For registration under UAE VAT laws, your business needs to approve by the authorities. Engaging a UAE VAT service provider facilitates all VAT-related processes and helps your business comply with UAE VAT laws and regulations. IBM GLOBAL is one of the leading online business registration service providers in Dubai and VAT registration for trade in UAE, offering exclusive VAT services such as online VAT registration, accounting, and bookkeeping services in Dubai.
VAT registration in the UAE
Companies and individuals conducting business activities whose turnover exceeds the VAT registration threshold applicable in the UAE required to register for VAT. However, this threshold does not apply to foreign companies.
Voluntary VAT registration in Dubai is not mandatory if the company’s turnover is below the threshold for mandatory VAT registration – before making such a decision, careful consideration should be given to the potential amount payable on the acquisition of the business and the cost of tax compliance. Businesses that are not registered for VAT cannot charge VAT on their sales and cannot claim VAT on inputs.
Businesses must register all business transactions:
Imports or exports
Supplies and purchases of VAT-exempt or zero-rated goods
Debit or credit vouchers
VAT registration in Dubai
Types of VAT registration in the UAE
According to the UAE VAT laws, there are two types of VAT registration in the UAE. One is the mandatory VAT registration and the other is the optional VAT registration.
Mandatory VAT Registration:
Any individual or other person who has supplied/sold goods worth more than AED 375,000 in the last 12 months must register for VAT in the UAE.
Non-residents must register for VAT in the UAE if they wish to supply goods to the UAE, regardless of the number of sales. The VAT registration requirement does not apply to these non-residents unless another person is responsible for paying VAT on these supplies.
In addition, if the supply/sales volume expected to exceed AED 375,000 in the next 30 days, you must apply for mandatory UAE VAT registration.
B – Voluntary VAT Registration:
If your supplies/sales exceed AED 187,500 in the last 12 months (but are less than AED 375,000), you can register for VAT in the UAE.
In some cases, anyone who expects their supplies/sales to exceed AED 187,500 (but be less than AED 375,000) within the next 30 days may voluntarily register for VAT for good reason.
If your taxable expenses exceed AED 187,500 in the last 12 months, you have the option to register for VAT in the UAE.
In some cases, individuals whose taxable expenses expected to exceed AED 187,500 within the next 30 days may choose to register for VAT under any procedure.