Value Added Tax (VAT), an indirect tax levied on consumption of goods and services has been adopted as a system by almost 160 countries globally. This tax serves as another segment for revenue generation for the higher authority. UAE is one of the most dynamic countries of the world. The Emirates have got several zones that have been considered as a business free-tax zone that became the centre of investment for foreign investors. If your business is registered under VAT law, it signifies that it holds a recognition in the eyes of the government. Having realized this, the GCC countries have recently registered themselves under VAT law and implemented it by 1st Jan 2018 with 5% as the VAT rate.
Businesses having taxable supplies and imports above AED 375,000.
Businesses having taxable supplies and imports between AED 187,500 and 375,000.
Businesses having taxable supplies and imports less than AED 187,500.
VAT Group Registration is a tax registration process where two or more business parties club together to form a group, with a motive of paying a single tax. By registering under the Group VAT scheme, the businesses under consideration get a single VAT number and can file a single return.
MHM has been a leader player in providing Taxation services for corporates. Our team of VAT experts will support you to the VAT process and frame it in the most beneficial way to reduce your cash outflow during tax payment stage, through delivering a wide range of services in VAT registration such as:
TRN is the tax registration number issued by the Federal Tax Authority, it’s a unique nine-digit identification number assigned to each individual taxpayer, business enterprise, organization (non-profit, partnership, charity, etc.) by way of an automated system regulated by FTA.
Any business entity that ails to complete the VAT registration process before the deadline set by FTA must undergo a fine of AED 20,000.
Any business whose value of supplies has exceeded AED 375,000 Annually or expecting to make taxable supplies in the next 30 days that will have a value that is more than AED 375,000.
Voluntary VAT registration is a process of VAT registration for business entities whose value of supplies/taxable expenses is between AED 187,500 and 375,000, annually. They have the option to register or not register for VAT.