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