With VAT easing its way into the GCC countries, it is of utmost importance for the companies to move in the direction of preparing for the same. Come; join us in making your company VAT ready.
On 1st January 2018 VAT or Value Added Tax was introduced in UAE and it has become mandatory for all the companies to register their businesses in accordance with the criteria of the new taxing system. Every business, individual or firm, has to be registered with the FTA. Every business having an annual turnover of AED 375,000 or more is required to register their business under the VAT regime. However, even companies who do not meet the minimum turnover criteria can also register themselves via voluntary registration.
Companies who do not register themselves in the VAT system, they would not be to charge VAT on their sales neither collects VAT on their purchased inputs. Also, failure to register within the stipulated time will encompass a fine of AED 20,000.
Thresholds for VAT registration under the FTA
Documents required for VAT registration
As per the guidelines of the FTA, the businesses registering themselves have to furnish all the necessary documents to be eligible for registration. The list of documents required is as follows.
Apart from the above mentioned documents, one is also required to provide other details such as
DDP Accounting & Bookkeeping is well renowned audit and accounting firm in UAE providing accounting, advisory and company incorporation services to clients in UAE.