By Contributing Author
VAT registration in UAE is mandatory for some businesses but some businesses can also get themselves registered for VAT voluntarily as well. There are different cases for that as well. VAT registration got implemented on the businesses of UAE in January 2019. It was implemented at the rate of 5 percent.
Different countries in the UAE have different rates at which the VAT is applied. In UAE it is quite new and that’s the main reason why people are still learning about it. They are not able to grasp the whole knowledge of the UAE. Due to these and many other reasons, some of the companies do not get to comply with the rules and regulations of VAT which ultimately make them pay fines and penalties.
A lot of people at the start got scared of VAT. They thought that it will be a huge amount and they will become poor if they pay taxes. This is not true. In the UAE, the percentage of implemented VAT is very low. This shows there is nothing UAE residents should worry about. It will be a very small percentage and will not affect their businesses at all. In fact, it will help the government authorities in using that money rot the welfare of the UAE.
Voluntary VAT registration
For the businesses to get registered for VTA, the value of their taxable supplies and goods should exceed that of 375000. This is the mandatory threshold for VAT registration. If any business is having a turnover of 375000 and is still not getting registered for VAT, it is in huge trouble.
Conditions for Voluntary VAT registration
Here are the conditions that should be fulfilled by the companies if they want to go for voluntary VAT registration which is mentioned below;
If the business wants to get registered for VAT voluntarily, it should have an annual turnover of
AED 187500. If not, the company will not be allowed to get VAT registered.
For a business whose expenses exceed that of the voluntary VAT registration, it can also get
Voluntary registration is only for those who feel like registering for VAT. There are no hard and fast rules
in this case. Although the companies how do not get registered even after having the required threshold
for VAT registration in UAE, the problem is real.
You can get help regarding VAT registration through the VAT agents. They know how to deal with the
nitty and gritty of VAT. They will make sure that your business is performing all of its functions while
keeping in mind the VAT and its rules.
It is not difficult to understand but still, the government authorities in the UAE are doing every possible thing to make the people understand about VAT and its implications.
Do not worry if you are unable to learn more about VAT because the tax agents are always there to
assist you. They will even help you in registering and infusing VAT into your business’s systems.