Criteria for registering for VAT
Mandatory registration:A business must register for VAT if its taxable supplies and imports or taxable expenses exceed AED 375,000 during last 12 months.
Voluntary registration:It is optional for businesses whose taxable supplies and imports or taxable expenses exceed AED 187,500 but do not exceed AED 375,000 during last 12 months.
Taxable supplies: For the purposes of understanding whether a registration obligation exists, a taxable supply refers to a supply of goods or services made by a business in the UAE that may be taxed at a rate of either 5% or 0%. Imports are also taken into consideration for this purpose, if a supply of such goods or services would be taxable if made within the UAE.
How to register for VAT?
Registration for VAT in the UAE is an online process which is accessible in the Federal Tax Authority’s online portal. Before proceeding for VAT registration, the applicant should consider various aspects such as, whether to register as voluntary option or mandatory option, weather to register as a Tax Group or a Standalone etc.
A business house pays the government the tax that it collects from the customers, but at the same time it receives a refund from the government on tax that it has paid to its suppliers in the form of adjustment against tax collected from customers.
Foreign businesses may also recover the VAT they incur when visiting the UAE by complying with certain conditions.
Registration for VAT in the UAE is an online process which is accessible in the Federal Tax Authority’s online portal. Before proceeding for VAT registration, the applicant should consider various aspects such as, whether to register as voluntary option or mandatory option, weather to register as a Tax Group or a Standalone etc.
A business house pays the government the tax that it collects from the customers, but at the same time it receives a refund from the government on tax that it has paid to its suppliers in the form of adjustment against tax collected from customers.
Foreign businesses may also recover the VAT they incur when visiting the UAE by complying with certain conditions.
contact us