VAT Pertinent Matters!

Vat registration in dubai

Value Added Tax (VAT) is an indirect tax based on consumption in the supply chain. VAT was implemented by UAE on 01 January 2018 at the standard rate of 5% with the exception of 0% on exports and no VAT on exempt supplies including medical, education, etc.

Who must be registered under UAE VAT?

A company must register format if the taxable supplies and spending surpass the compulsory registration limit of AED 375,000. Similarly, a company might choose to register for VAT voluntarily where the taxable supplies and spending is more than AED 187,500.

Vat registration in dubai

VAT Returns Filing

Vat registration in dubai ought to file VAT Returns as per the tax period assigned by Federal Tax Authority. Non-compliance will levy fines ranging from AED 1,000 to 300% of the VAT unsettled VAT liability.

Timeframe to retain records under UAE VAT regulation?

The Accounting companies in abu dhabi records are needed to be maintained for at least 5 years from the end of the period to which they relate.

Who is qualified to obtain Input VAT credit?

VAT registrants are permitted to claim the VAT paid on procurements. A non-taxable individual is typically not permitted to claim their input VAT.

What is VAT Grouping?

Related companies who complied with conditions as specified by Federal Tax Authority can obtain one Group Tax Registration Number (TRN) for all companies and file one VAT Return for the entire Group.

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