In the UAE, the VAT voluntary registration threshold is AED 187,500 per annum.
If a business’s taxable turnover exceeds AED 375,000 per annum, it is mandatory for them to register for VAT and start collecting VAT from its customers on behalf of the government.
After registering for VAT, businesses are required to file VAT returns on a regular basis (usually quarterly), which report the amount of VAT they have charged their customers and the amount of VAT they have paid to their suppliers. The VAT return must also include details about the business’s total sales, purchases, and expenses for the period.
Compliance with VAT regulations is crucial for businesses as VAT returns must be filed on time (within 28 days after the end of the tax period) to avoid penalties and fines. Any errors in VAT returns or failure to file them can also result in penalties and fines. Accurate record-keeping is necessary to ensure compliance with VAT regulations.
Our expert VAT specialist provide valuable assistance to with VAT registration by guiding them through the process, helping with the preparation and submission of the VAT registration application, ensuring compliance with all relevant VAT regulations, reviewing financial records to avoid any potential discrepancies, and providing ongoing support to help the client remain compliant with VAT regulations and laws in order to avoid any potential penalties or fines resulting from non-compliance, and ensure a smooth and efficient registration process.