VAT Registration

 

VAT(value added tax) is a type of tax service  which is levied by the central government of any country on the sales of goods and services when those goods or services are sold to the final customers. The Value added tax is paid by the manufacturers or producers of the goods or services but then it is finally levied on the customers. The tax is transferred from the producers to the final customers.

 

As the name suggests, this tax is charged on the value added to a product and the final customer has to pay the tax finally as per the rules and regulations of the govt. Of the countries.

 

All the businesses, manufacturers companies and other service organizations need to be registered as per the vat registration online act of the country on the annual basis.

 

What is VAT registration? How to do and Why to do?

VAT registration is very necessary for any business, manufacturer or producer as per the guidelines for the different sectors. VAT registration or TIN number is a mandatory and very important process for all the businesses, producers, manufacturers or traders who are actively involved in the manufacturing or sales of the goods, services and products.

 

VAT is somewhere similar to the Sales TAX but many different rules and criterias. It is collected only once at the time of the purchasing of any good or product. VAT registration can be done online there are many companies which will do VAT registration for your company, business or whatever you are a trader etc.

 

If you are a residence of Dubai or UAE you can do online registration for VAT for your business, product etc. It is necessary to do VAT registration in Dubai.

 

Manufacturers, producers or traders must obtain VAT registration if their annual sales are more than Rs. 5 Lakhs(10 Lakhs in some states).

 

Procedure of VAT Registration

The VAT registration process is very simple, but there could be minor differences in the rules in different states of the country which is not a big issue. Tax credit method is generally used for VAT assessment and collection.

 

The basic rate of VAT ranges between 4% to 12.5% depending upon the categories of products and services.

 

 

Steps for VAT registration

 

Firstly you have to create an e-services account and then you have to complete the VAT registration process. Creating an e-service account is simple but there are lots of informational fields to be filled in the form related to your company, business and trade. So fill those details genuinely and correctly and upload the proper documents as well which are asked.

 

• Creation of e-service account
• VAT registration process

 

Requirements to be filled in the e-services account

 

• Do you hold a Trade License in the UAE
• Are you registering mandatorily or voluntarily
• Are you also applying to create or join a tax group
• Upload the relevant documents in the form which are asked to upload
• Your banking details(basic: name etc) the bank should be established in UAE
• Business related activities
• GCC Activities(estimated value of 12 months imports)
• Customs registration information

 

 

If you wants to do VAT registration in Dubai or UAE contact The Vat Consultant

Mandatory provisions and exemptions concerning UAE VAT

Despite the fact that for many types of companies, there is practically no such thing as taxes in the UAE, let's look at the taxes that are worth paying attention to. In the article below, we will provide details about mandatory provisions and exemptions under Vat in UAE. We will also tell you how to file a tax return in the UAE.

Registration for VAT

A company must register for Vat return if its taxable income exceeds the mandatory registration limit of AED 375,000.

Moreover, a company can optionally decide to register for VAT if its income does not exceed the mandatory registration limit but exceeds the voluntary registration level of AED 187,000.

You can check the website of the UAE government to know vat return filing date in uae.

Mandatory provisions for companies regarding VAT:

You need to collect VAT on the offered goods or services subject to taxation;

You can change the amount of any VAT levied related to goods and services intended for the conduct of business;

It is necessary to keep records, which will allow the authorities to evaluate and receive the collected VAT.

If you are a VAT payer, you must quarterly submit reports, information on the amount of VAT withheld and paid by you to the state budget. But for large groups, vat return filing must be submitted monthly. This is a formal procedure; the report can be easily submitted online through the portal of the Federal Tax Authority

If the amount of VAT withheld by you exceeds the amount of VAT paid, then you must reflect this in the statements and pay the difference to the state budget. If the amount of VAT paid by you exceeds the withheld amount, you can claim a refund of the overpayment from the state budget.

You can take the help of vat consultants in dubai to get trn number in uae.

Companies exempt from VAT:

VAT as a tax on all types of consumption is applied at a rate of 5% on all transactions in goods and services unless otherwise specified in Article 46 of Federal Legislative Decree 2017 No. 8 On Value Added Tax, or the amount of zero percent in accordance with Article 5 of the Federal Legislative Decree, namely:

• Certain vehicles such as trains, trams, ships, planes;
• First sale/lease of residential buildings;
• Aircraft or ships designed to rescue or provide assistance in the air or on the water;
• Certain medical services and related goods and services, such as non-cosmetic surgeries;

How and when to pay VAT in the UAE?

Most companies pay VAT on a quarterly basis to the FTA, but the FTA may, at its discretion, set a different tax period than the standard one for a specific group of taxpayers. The vat filing dubai must be filed no later than the 28th day following the relevant tax period or before another date set by the Federal Tax Service. fta dubai

At the end of each VAT period, the company must complete a VAT return form using the FTA online portal with appropriate payment in any of the following ways:

• E-Dirham credit card.
• Local bank transfer using GIBAN (a unique IBAN assigned to each taxpayer).
• Direct cash deposit through exchange offices.